Economic and Social Impact of the Rosia Montana Project

The University ‘December 1, 1918’ of Alba Iulia

ECONOMIC AND SOCIAL IMPACT OF THE ROSIA MONTANA PROJECT

The University ‘December 1, 1918’ of Alba Iulia is a public institution of superior education which has assumed from its early beginnings the role of an institution of superior education and research, strongly involved in the community life. Taking into consideration this perspective, a group of teachers from of the University have finalized a study concerning the economic and social impact of the Roşia Montană mining project on the area. SUMMARY

1. Introduction...... 11 1.1. Background...... 11 1.2. Scope of the study...... 11 1.3. Structure of the study...... 11 1.4. Work methodology...... 12 1.5. Work team...... 12

2. DESCRIPTION OF RMGC PROJECT…...... 14 2.1. RMGC project promoters...... 14 2.2. Project location and description…...... 14 2.3. Project development stages...... 16

3. DESCRIPTION OF THE IMPACT AREA...... 19 3.1. Delimitation of the impact area...... 19 3.2. Geographical and administrative characteristics ...... 20 3.3. Historical and cultural aspects...... 33 3.4. Demographic and social references...... 42 3.5. Economic potential of the impact area ...... 55 3.6. SWOT Analysis...... 72

4. THE PROJECT’S ECONOMIC IMPACT ON THE AREA FROM THE PERSPECTIVE OF SUSTAINABLE GROWTH ...... 77 4.1. The acquisition of properties and land assignment contracts ...... 77 4.2. The building of the relocation infrastructure ...... 81 4.3. The construction of the mining infrastructure and its use after the Project’s end ...... 82 4.4. The general development of the local infrastructure ...... 84 4.5. Jobs created and their social implications ...... 86 4.6. Protection of the historic and cultural heritagel ...... 89 4.7. Impact of the R.M.G.C. project budgets of local authorities ...... 97 4.8. Impact of the RMGC project on the state consolidated budget ...... 103 4.9. Development of business in the area and the collaboration with local economic units ...... 110 4.10. The Micro Crediting Initiative – Local Development Strategy Component .... 115 4.11. Development of education and of professional training activities ...... 117 4.12. Creating a public-private partnership ...... 119 4.13. Perception of the project and expectations of the locals ...... 122

5. CONCLUSIONS ...... 127

EXTENDED SUMMARY

The University ‘December 1, 1918’ of Alba Iulia is a public institution of higher education which has assumed from its early beginnings the role of an institution of higher education and research, strongly involved in community life. Taking into consideration this perspective, a group of teachers from of the University have finalized a study concerning the economic and social impact of the mining project Roşia Montană on the area.

The need for this study was suggested by the implications of this project as far as the economy and social life of the area are concerned, as well as the controversies that the realization of this project brought up. Although its authors are convinced of the importance of the environmental impact, this was not the object of the research, because there are other numerous studies that analyses the respective aspect and these fundament favorable or unfavorable conclusions of the project from this perspective.

The purpose of the study id not to provide a final verdict, but offer to those who are interested in the project information concerning the economic and social situation of the area and the impact that the accomplishment of the mining project submitted by RMGC has on the area. The dimension of the cultural impact is approached in a tangential manner because of its significance in the area and the participation of the University in the accomplishment of archeological research from the impact area of the project.

The study is structured in five chapters the synthesis of which will be presented hereinafter:

CHAPTER 1 is a general introduction, in which the general framework of the study is presented, its scope, structure, methodology and the team. It is highlighted that the majority of the necessary data was collected from authorized, independent sources so as to obtain objective and impartial conclusions as far as the impact of the project is concerned. The team was formed of specialists with complex competences in the economic and social areas.

CHAPTER 2 presents a synthesis of the gold exploitation project submitted by the Trading Company Roşia Montană Gold Corporation S.A. (RMGC), with the following distribution of the joint stock: 80 % Gabriel Resources Ltd (Canada), 19,31 % Autonomous Copper Regia Deva (subsequently Mininvest), 0,23 % three minority shareholders (Cartel Bau, Foricon S.A. and Comat S.A.)

The project submitted by RMGC has as main objective the development of a gold and silver mine and is locate din the vicinity of the village Roşia Montană, in Alba County, 80 km of Alba Iulia. The mining activities will be carried out in four open pits (Cetate, Cârnic, Orlea and Jig), the exploitable reserve being estimated at 215 Mt ore with a 1,46 g/tAu content and 6,9 t/Ag recovered metals, the overall production being estimated at 247,7 t (7,9 mill. ounces) Au and 898,5t (28,9 mill. ounces) Ag.

The expenses of the project are estimated at 3703 million dollars of which 2523 million $ will be spent in Romania. The direct benefits of the Romanian state form taxes and dividends are of 985 mill. $, and the estimated profit of the company is of 1,4 billion dollars.

The mining project is anticipated to be carried out in four distinct phases: 1. pre-construction period; 2. construction period; 3. exploitation period; 4. project closing period;

This phasing has generated the necessity of tackling the economic and social impact dynamic according to the respective phases.

CHAPTER 3 describes the impact area. This is limited by the perimeter belonging to the following localities: Roşia Montană, Abrud, Bucium, Ciuruleasa, Câmpeni, Mogoş, Lupşa, Bistra.

Many existent studies on the project focus their attention only on the village Roşia Montană when they make an evaluation of the impact of the project. But we consider that the area of research must be extended over the villages in the vicinity given the tight economic, social and cultural connections among them, established over the time and the impact of the project that will be felt directly as well as indirectly. From among the mentioned villages a strong impact next to Roşia Montană will be felt in Abrud and Bucium because of the characteristics of implementation of the project.

From a geographical point of view the direct impact area is in the middle hydrographic basin of the river Arieş, at the borderline between two important geomorphologic units of the Apuseni Mountains, respectively the Massif Muntele Mare in the Northern half of the area and the Metaliferi Mountains, in the Southern half. From on administrative perspective, the respective perimeter comprises two towns and six townships, each of them administering several villages.

Because of the existent wealth and especially because of the existence of the gold bedding, the impact area has specific characteristics in comparison with the neighboring communities, being the cradle of a civilization with a bi-millenarian existence, a fact proven by archeological vestiges existent in the area. The village Roşia Montană is known in the historical-epigraphic literature by means the discovery of 25 wooden waxed plates depicting aspects of the socio- economical life in the Roman era.

Other sites of major cultural interest have been identified in the direct impact area, such as mining works and galleries that date back to the Roman era, of bi-millennial age, constructions from the same period of time, funereal enclosures and an administrative building), various archeological artifacts and numerous vestiges dating from the Roman period (pottery containers, coins and tools).

The national research program ‘Alburnus Maior’ (2001-2006) had in view the identification and investigation of the archeological vestiges from the perimeter of the impact area of the project so as to conserve and exploit these.

The section concerning the demographic and social landmarks presents the demographic evolutions from the impact area in comparison to those already existent in Alba County. The analysis shows the accentuated decrease of the population of this area, by three times as high as

4 the county average, because of the natural negative increase and the migratory movement. If this situation was to be maintained the population of this area could decrease until 2035 by 41,7%.

As far as occupancy and unemployment are concerned, we notice that in the impact area there have been massive dismissals (2798 employees in the period between 997-2007) because of the cease of activity of the two mining exploitations CupruMin and RoşiaMin. Because no other opportunities for employment to match up the dismissals have presented themselves and because of the new contingent of active population, the unemployment rate in the area is extremely high. From this point of view, the most affected villages are Roşia Montană (where the unemployment rate twice exceeds the village average in the county and four times the urban average), Lupşa, Bucium and Abrud. The figures shown in the study refer to the official data, while in reality the unemployment is even more acute because many persons are not registered with AJOFM Alba, they unemployment period having been exceeded.

The economic potential of the impact area is presented taking into consideration the various branches of economy, as follows: the agricultural potential, forestry, industry, tourism resources, services and transportation infrastructure.

Agriculture, although representing a frequently present economic activity in the impact area does not have the necessary resources to economically sustain the community. The agricultural area is limited, the terrain is rough, specific to mountainous region, and the climate and soil are not favorable to field crops. The arable surface for one household is extremely reduced, larger areas being occupied by pastures and meadows. Under these conditions there are resources for animal husbandry, but insufficient still for the organization of market-oriented agricultural exploitations. The placement of the terrains occupied by the pastures and meadows, their breaking up due to ownership changes, their low productivity and the difficulties people are met with in their efforts of exploitation of the agricultural products make animal husbandry unprofitable in this area for people who whish to develop such businesses. The results obtained from raising animals are uncompetitive. All this is an explanation for the fact that there is no agricultural exploitation for commercial purposes in this area. The technical endowment of agriculture in the impact area is nearly inexistent, while the utilized technologies are rudimentary.

According to the conclusions of the study, agriculture cannot be an alternative for durable development in the area, an aspect also proven by the opinion of the population in the area.

Forestry takes up an important place in the economy of the area, but the distribution of property, the management of the growing stock and other specific problems make the exploitation of wood a source of income for only a reduced number of the population of the area. Roşia Montană, the village most affected by the project does not dispose of wood that can be used for industrial exploitation.

The industry in the area is based on the mining tradition. Next to that, of significant importance is the wood working in Câmpeni and the garment industry (in Abrud).

The tourism resources of the impact area of the RMGC project are presented in the context of the entire area of the Apuseni Mountains. The area disposes of natural and entropic resources, which are insufficiently exploited because of the lack of tourism infrastructure and the necessary investment funds in this domain. The strong competition represented by villages with a status of

5 tourism resort is also to be taken into account. The execution of the project submitted by RMGC may be an accelerating factor for the tourism development in the area by means of contributions to the development of the infrastructure, infusion of capital in the area, the development of new tourism products and the development of private initiatives. Services are underdeveloped in the area. Only the road transportation services for cargo and people, as well as hygiene services (hairdresser, barber shop) are available in the area. Their development is also limited by the low purchasing power of the population in the area.

The road transportation infrastructure is provided by the intersection of highways DN 74 and DN 74 A. The railway infrastructure is missing altogether, whereas the means of communication of local interest are poorly taken care of and not exploited correspondingly.

The SWOT analysis made at the end on chapter 3 is a synthetic diagnosis of the impact area from an economic and socio-cultural point of view. The components of the analysis highlight the dependence of durable development of the area involving the mining activity, for which the resources and traditions are already in place. Therefore, it is safe to suppose that the mining project submitted by the RMGC has positive economic and social implications in the area.

CHAPTER 4 presents the economic and social impact of the project on the area from the point of view of durable development. The directions where this impact is felt are presented and analyzed in the dynamic of the project, in accordance to the phases of its implementation and progress.

In the section referring to the purchasing of properties and contracts for ceasing terrain the financial and material aspects connected to the company strategy for purchasing properties and contracts for ceasing terrain over the years are analyzed, with highlight of the impact of this on the population, directly or indirectly affected by the project.

Taking into account the impact of the project on the properties in the area, as well as the legal and institutional framework existent in Romania and on a global level, the company RMGC has proposed to the population living in the area the ceasing of their right of property, offering them several options that permit the owners the timely substantiation of a proper strategy: • Compensation of properties (buildings, terrains, perennial crops) in accordance with the principle ‘integral replacement value’; • Compensation for the commercial activities affected by the project; • Offering a transposition package that includes compensation for the ownership right passed on and providing alternatives of transposition to other localities (locations in Piatra Albă and Alba Iulia) where the population that has been moved is offered options as far as the building their own house on the terrain that was offered or accepting technical assistance provided by the company for the building of houses in accordance to approved architectural projects. In such cases when the ownership rights are financially superior to the action of transposition, a compensation of the respective differences will be provided for. The transposition package comprises other facilities as well, which are meant to convince the families to stay in this area; • Offering a special package of compensation for the population that opts for relocation ; these will move into another house of their choice, using the received money as compensation from RMGC. The offered package includes assistance in

transportation, recovery of construction materials and assistance for the harvesting of the crops;

We mention that in the calculation of the compensations afferent to the ceasing of the ownership right, the company has taken into consideration the development of prices on the real estate market, offering correct acquisition prices. Until 2006 approximately 594 residential properties have been purchased (62,7%) and 1028 non-residential properties. The 440 families from which the respective properties have been purchased have received an average sum of 93505 USD each, 76408 USD respectively for residential properties and 17025 for non-residential properties.

With the received money a number of families have opted for relocation (approx. 295 families), meaning they left for other localities, where they have purchased households. This was the choice of the respective families and they probably had arguments for choosing a certain location, such as closeness to their children, jobs and better living conditions, etc.

However, the psychological effects of the translocation or of the relocation cannot be denied because people, especially older ones, leave behind memories and social connections that are hard to remake somewhere else.

The impact of the construction of the translocation infrastructure on the area is by means of the two translocation sites (Piatra Albă and Dealul Furcilor) of a modern infrastructure that has all the characteristics similar to localities in the developed European states, offering civilized living conditions for the population living in the respective locations.

The company will spend great sums for the accomplishing of the two translocation sites, sums which vary between 35-70 mill. dollars, this having as an effect the development of a business market for various companies and job opportunities for people.

The section regarding the construction of the exploitation infrastructure and exploitation after finalization of the project takes into consideration the fact that accomplishing the exploitation at the scheduled capacity of the project presupposes a corresponding technical infrastructure. The development of the infrastructure will take approximately two years and the impact on the area will be felt through the building of an infrastructure that will be available for other economic activities too, by means of the job opportunities available in this phase and by means of the adjacent businesses necessary for the development of the infrastructure, which will be accomplished by the company RMGC with the help of other economic entities in the area.

At the closing up of the project a part of the infrastructure will be deallocated, while another part will be used for developing businesses in the area with a different main activity.

The general development of the local infrastructure as a result of the accomplishing of the project submitted by RMGC is an opportunity for general development of the businesses in the area and for providing appropriate living conditions for the population in the area.

The execution of the project creates the necessary premises for the general development of the local infrastructure through direct and indirect contribution from the company RMGC as follows: - development and modernization of the water supply system; - development of the electrical energy supply network;

- development of the sewage infrastructure and solid refuse collection system; - development of road and railway transportation infrastructure; - development of telecommunications infrastructure and Internet.

The execution of the project has an extremely positive effect on the degree of occupancy of labor force in the area, as it is obvious from the section concerning created jobs and the social implications of these.

The present context regarding the labor market, presented in Chapter 3 demonstrates the utility of the RMGC project, as being a feasible alternative as far as the absorption of existent available labor force.

Presently, the impact area is going through its most critical period due to the degree of labor force occupancy, cause by the recent shut down of the two mining exploitations (Minvest and RoşiaMin), the result of which was the dismissal of nearly 2800 employees in the period between 1997-2007.

In the protocol statements signed with the local councils of Roşia Montană and Abrud the first reference of employment is granted for people resident in the area. The distinctiveness of the exploitation also offers employment opportunities for non-qualified and semi-qualified workers, who would have difficulties getting a job somewhere else.

According to information provided by RMGC the number of employees within the project has reached by the end of the first trimester of the year 2007 473 employees of whom approximately 82 % come from the direct impact area, meaning: Roşia Montană (286), Abrud (73), Bucium (16), Câmpeni (8), Ciuruleasa (3), Mogos (1).

The company offers wage packages relative to the average wage income of the area, which will have positive social implications due to the provision of the financial resources necessary for decent living conditions.

RMGC plans to offer 1200 jobs within the construction period, while in the exploitation period a number of 640 will be hired.

Besides the mentioned direct working places, RMGC considers that a number of further 5500 indirect jobs can be created within connective activities and in other economic areas.

The created jobs, by means of the offered wage packages, have a strong social impact, putting an end to labor force migration and being, at the same time, a factor of economic and social progress, according to the requests of durable development.

The section concerning the protection of the historic and cultural heritage takes into account the observing of the applicable laws in this domain, conservation and exploitation of the existent heritage. In this respect the following are presented: implementation of the unloading procedure of the archeological site, historical monuments and protected area, projects of conservation and restoration of the protected historical buildings and of the Historic Center Protected Area of Roşia Montană, the perspectives for development of the tourism potential taking into consideration the values of cultural heritage.

The funds that the company is ready to make available in the coming years – in the context of the implementation of the mining project – for research, conservation, restoration works, improving and attending of the historical galleries of the Roşia Montană area are of 10.727.000 USD, and those for conservation works, restoration and maintenance in the Historic Center Protected Area of Roşia Montană, as well as for the historical monument buildings situated outside of this goes up to 3.385.000 $.

Within the study a series of critical positions are presented connected to the mining project submitted by RMGC, which in the opinion put forward by the Romanian Academy and other scientific organizations have a negative effect on the archeological and cultural heritage of the area.

Specifying the effect of the R.M.G.C. project on the budgets of the local authorities takes into account the fact that the Trading Company RMGC S.A. is one of the economic agents of the area, which through the nature of its activity has a role in the local development in the largest sense of this notion, and one of the directions with a particular effect of the project submitted by the company refers to its contribution to the local budget.

To be able to present the effect of the economic activity of the company on local budgets chart analyses and diagrams have been presented within the study based on information provided by the company, as well as data of public interest provided by the local authorities, confirmed by them and other state organizations. The following contributions of the company have been taken into account: - the detailed numbers for the income tax; - tax on corporate body buildings; - tax on corporate body terrains; - tax on corporate body means of transportation; - income from concessions, rentals, associations; - other taxes.

Obviously, the impact of the RMGC project on the local budget income structured and detailed in the above paragraph are more eloquently presented in the local budget structure of the Roşia Montană City Hall, where its input is 90,49 % in the year 2004, of 87,62 % in the year 2005 and 84,34 % in the year 2006 from the total of taxes collected by the local authorities.

The effect of the RMGC project on the state consolidated budget takes into account the fact that the economic activity of the company RMGC S.A. generates important income for the general consolidated state budget.

Accomplishing the consolidated state budget which comprises the state budget as well as state social insurance budget gives the state the possibility to develop in the area economic, social, environmental and other type of activities. This way the indirect impact of the project on the area can be analyzed and presented.

The main taxes by means of which RMGC contributes to the forming of the state budget income are: - tax on wage income;

- value added tax; - tax on prospecting, exploration and exploitation of mineral resources; - customs duty and other taxes on international transactions; - tax on income earned by non-resident corporate bodies; - other taxes; - increments and penalties afferent to obligations owned to the state budget.

Important contributions of RMGC are to be founding the structure of the state social insurance budget, the unemployment insurance budget, the single national fund of social health insurance. Alone in the exploitation period of the project the benefits of the Romanian state as a consequence of dividends and taxes transferred by the company RMGC rise up to nearly one billion dollars.

The status of under-privileged area does not limit the contribution of the company to the local budgets and the general consolidated state budget except in a very limited amount, because the period for which the impact area is declared to be an under-privileged area expires in October 2009.

The development of businesses in the area and the cooperation with local economic agents is another direction through which the economic impact of the project submitted by RMGC is manifested. This can be a catalyst for the general development of businesses in the area by impelling those already existent and the creation of new business opportunities as a result of externalization of certain services supplied by the company.

The acquisition policy of the company grants priority to local, regional and state companies. Within the study, practical examples of cooperation with local economic agents are presented.

The execution of the project boosts up the general framework of businesses in the area in the direction of development of new economic activities, while the general development of the local infrastructure increases the purchase power of the population, the development of the entrepreneurial spirit as a result of the training courses organized by the company and the existence of a general climate of encouragement of business development, which creates the premises for the attraction of new investors, inclusively those with foreign capital.

Another direction of the economic impact of the project is the micro-crediting initiative – a component part of the local development strategy. This aspect is accomplished by means of the company creating the Roşia Montană Micro-credit institution, the main objective of which is insuring the possibility of individualized loans to persons interested in a opening up a business and to small businesses that wish to expand. An important and ambitious objective that the micro-crediting institution has is not just to encourage the general development of business during the entire duration of the project, but also after the closing of the mine.

Roşia Montană Micro-credit is part of the Community Development initiative of the company, which has developed a complex program for durable development, also mentioned under other chapters of the study.

The clients of the Micro-credit Institution will benefit by consulting services regarding the administration of the credit and of the business, as well as for the drawing up of the documentation necessary for the starting up of a business.

The development of education and of professional training activities is an objective of RMGC, which has planned and managed to initiate and develop professional training and development programs for domains of strict specialization connected to the deployment of activities within the project, but also other courses for adults that wish to change their profession so as to be able to find new opportunities of employment or to acquire knowledge and competences necessary for entrepreneurial activities. Almost 1400 people have already benefited by the training courses organized by RMGC up to the present moment.

Creating a public-private partnership as a result of the management exercised by RMGC, is an important direction of implication of the company in ensuring durable development of the area. In the development of partnerships, the involved parties do not exercise their direct authority within the undertaken activities, the level of implication and cooperation between partners are established by means of consulting sessions, based on general consensus. Examples of partnerships initiated by RMGC, objectives and involved partners.

The perception of the inhabitants and their expectations towards the accomplishment of the project submitted by RMGC is an important objective of the study developed by the research team of the University ‘December 1, 1918’ of Alba Iulia. The analysis presented within the study was made based on the information collected as a result of individual discussions with local key characters (local leaders, local representatives of non-governmental organizations, representatives of local administration), as well as a result of an investigation made on a representative sample of people from the impact area. The opinion of the people interviewed within the study is divided with respect to the accomplishment of the project, there being a majority of favorable opinion in cases of people who declare themselves well-informed about the project. The main reason for agreeing with the execution of the project is the urgent need for investments in the area, while the essential motive for disagreement is the fear of destruction of the natural environment as a result of cyanide pollution.

CHAPTER 5 reflects the conclusions of the study, that configure the opinion of the authors according to which the mining project submitted by RMGC has a general positive impact on the area from an economic and social point of view, being a viable alternative for its durable development.

1. INTRODUCTION

1.1. Background .

During the first part of 2007, “1 Decembrie 1918” University from Alba Iulia conducted a study regarding the social and economic impact of the auriferous mining project proposed by Roşia Montană Gold Corporation S.A.(RMGC) on the area. The impact was dynamically analysed from the view point of extensive development of the area, starting with the project initiation stage (preconstruction) and the further development of the other stages: project engineering, operation and completion. A real image of the opportunity of the project was obtained this way from the view point of two of the three aspects of the extensive development, namely the economic and social component. Although the authors of the study are aware of the significance of the environment impact, this was not the object of the present research, numerous studies being available that make evidence in favor of or against the project proposed by RMGC in this respect. “1 Decembrie 1918” University from Alba Iulia is a public higher education institution that undertook since its setting up the double role of higher education and research institution, stongly involved in the community life. In this respect the guarantee exists that an independent study was conducted, based on the realities of the zone that are well known by the teaching staff, researchers and the students of the University.

1.2. Scope of the study

The scope of the study is to highlight the economic impact of the project proposed by RMGC regarding the development of a gold and silver mining in Roşia Montană, România. The study will dynamically point out both the direct and the indirect impact on the area. Considering the project dimensions and its impact, the data provided within the study and the conclusions of the analysis are useful for the local community, the local and national administration authorities, the qualified institutions that are related to the project development and monitoring, the company investors and managers, the economic agents, the university students and all the factors concerned with this project. The analysis of the economic impact is suggested both by the dimension of this impact of the project and the specialized study profile of the University where the economic sciences field holds a significant place.

1.3. Structure of the study

The study is structured in 5 chapters: • Chapter 1 – is a general introduction; • Chapter 2 – provides a general description of the project developed by RMGC; • Chapter 3 – describes the impact area from the geographical, administrative, economic, social and cultural view points ; • Chapter 4 – analyses the dynamic economic impact of the project with respect to the extensive development of the area ; • Chapter 5 – summarises the conclusions of the study;

1.4. Work methodology

For the preparation of the study, methods and techniques specific for the economic- social analyses have been applied. The data collection was made from authorized sources that are specified in the project and the actual documentation meant social inquiries amongst the local population, discussions with local leaders, representatives of the economic agents operating in the area, statistical data and data from the public institutions, etc. Also, the data from the official reports of RMGC company have been analysed, that are compared to the information taken from the independent sources previously mentioned to the extent that such information is available. The SWOT analysis of the area offers the opportunity to understand from a realistic and objective view point the project impact on the area. Other similar studies on the project, reports, opinions, view points, area development strategies, etc we have made reference to, have been considered.

1.5. Work team

The members of the research team belong to the teaching staff of “1 Decembrie 1918” University from Alba Iulia, experts in the field, with complex abilities, who know the area as they live nearby Alba Iulia and some of them were born, spent their childhood and have been educated in this area. The table no. 1.1 shows the members of the research team : Table 1.1 Research team members Si. Name and first Teaching position Title Abilities no. name 1. Achim Moise University Professor Chancellor Technical Management Extensive development 2. Briciu Sorin University Professor Vice- Finance Accounting Audit Chancellor Accounting Project Management 3. Todea Nicolae University Professor Dean Accounting Finance Economic analysis Finance Accounting Audit 4. Burja Vasile University Professor Research General economy Department Economic analysis Director Extensive development 5. Stremţan Filimon University Professor Head of Economy of tourism department Economy of services Economy of commerce 6. Pascaru Mihai University Lecturer Head of Sociology department Rural development Regional development 7. Luduşan Nicolae University Lecturer Director of Geology IDD Geography department Statistics

8. Burja Camelia University Lecturer - Economic analysis Extensive development Agricultural economy 9. Marina Lucian Lecturer - Sociology Rural development 10. Dimen Levente Lector - Geography Topography 11. Cenar Iuliana Lector - Finance Accounting 12. Aldea Mihaela Lector - Applied mathematics Modelling-simulation 13 Mihai Gligor Lector - Archaeology 14. Buţiu Călina Lector - Sociology Rural development 15. Bolog Andreea Assistant - Marketing Economy of commerce 16. Dobra Iulian Assistant - Economic analysis Finance

II. DESCRIPTION OF RMGC PROJECT

2.1. RMGC project promoters

The Roşia Montană project is held and managed by S.C. Roşia Montană Gold Corporation S.A. (RMGC) 1. The company was registered in 1997 as S.C. Eurogold S.A. (Eurogold) a join-stock company with the following distribution of the share capital: 80 % Gabriel Resources Ltd (Canada) , 19,31 % Copper Public Corporation of Deva (subsequently Mininvest), 0,23 % three minor shareholders (Cartel Bau, Foricon S.A. and Comat S.A.). The initial purpose of the company consisted of research and investigation activities in the area. In 1999, S.C. Eurogold Resources S.A. changed its name to S.C. Roşia Montană Gold Corporation S.A.(RMGC). The mining concession license was obtained in December 1998 from the National Mineral Resources Agency (as per the Mines Law no. 85/2003) by Minvest (holder) and RMGC (subsidiary company), and in October 2000, the license was transferred from Minvest to RMGC, Minvest further remaining affiliate holder. The mining activities until ceasing the activity have been continued by Minvest (through the RoşiaMin branch) that is responsible for the environment related to the previous mining and preparation, including the ceasing of the activity from RoşiaMin. RMGC performs and finance all the mining and development activities related to the new project and in order to operate a new mining to the target production capacities (13 mil. t/year) the license should be changed and approved as per the new requirements by National Mineral Resources Agency (ANRM).

2.2. Project location and description

The main scope of the project proposed by RMGC is the development of a gold and silver mine nearby Roşia Montană village, Alba County, 80 km far from Alba Iulia. The location is in an old mining area, in the central-western part of Romania, in the region known as “Auriferous Quadrilateral” within Apuseni Mountains (Metaliferi Mountains) from the Carpathians chain. The mining activities will be performed in four open carriers (Cetate, Cârnic, Orlea and Jig), the reserves to be mined amounting to 215 Mt ore with a content of 1.46 g/t Au and 6.9 g/tAg recovered metals, the total production being estimated to 247.7 t (7.9 mil. ounces) Au and 898.5t (28,9 mil. ounces) Ag. About 16 tons of gold and 58 tons of silver will be yearly obtained. We may compare such figures with the total gold production of Romania that decreased from 2.43 tons in 1999 to 1.60 tons in 2005 2. In January 2006 the gold reserve of the National Bank of Romania was of 104.8 tons, as the same has ceased since 2001 the purchase of the gold resulted from the enriched ore processing from the domestic economic agents The administrative area of the localities affected by the project and the required land for the project are shown in table 2.1 3. We can notice that the most affected locality with respect to the change of the actual use of the lands is Roşia Montană for which about 25% of the total held

1 Roşia Montană Project – General information , vol.7., page 5-6, May 2006. 2 www.miniind.ro – Strategy project of mining industry for the period 2007-2020 , page.6. 3 Roşia Montană Project – Non-technical summary , page. 6-8, May 2006. 15 areas are required for the project. Out of the total required area of 1258 ha, the carriers proper will cover approximately 205 (out of which, 95 ha are actually affected by the existing mining). The project entails the most direct significant impact namely the necessity to move and relocate a number of 974 houses.

Table 2.1. Land required for Roşia Montană project Locality Administrative area Land required for % of the (ha) the project (ha) locality area Roşia Montană 4200 1054 25 Abrud 3500 170 5 Bucium 8778 32 0.4 Câmpeni 8520 1.6 0.02 Total 24998 1258 5

The project costs are estimated at 3703 million USD out of which 2523 million will be spent in Romania, representing direct investments in Romanian economy. The direct benefits related to Romania from duties, taxes and dividends amount to 985 mil. $. The increase of the gold price to more than 600 $/ounce made the investment profitable, the estimated profit of the company amounting to over 1.4 billion USD 4. The actual and future situation on the gold market, that resulted in the increase of the project profitability, significantly diminished the bankruptcy risk of the company, thus removing the assumption of several studies that took into consideration the possibility of temporary or permanent shut down of the mining following the fluctuation of the gold price 5. The project includes, besides the mining activities and the activities related to the ore processing, other activities such as 6: • the managing and minimizing of the social and environment impact of the activities within the project; • environment improvement and rehabilitation of the mining areas, after the termination of the project; • assistance granted for the termination of the actual mining operations; • activities for moving and relocation; • archaeological research in view of investigating, preserving and recovery of the historical patrimony; • mitigation of the impact on the environment caused by the mining operations in the past; • supporting of various local and regional programs regarding the extensive community development. Other activities of the project having an economic and social-cultural impact, that will occur in the project development dynamics will also be highlighted during the study.

4 Data provided by the company 5 Ştefan Răgălie, Ionel Haiduc – Development risks and alternatives of Roşia Montană, http://www.racai.ro/RISC1/StefanRagalie.pdf 6 Roşia Montană Project, - Initial conditions study on the cultural patrimony, vol.6, page.2-3, 16

2.3. Project development stages

The project is provided to develop in four distinct stages: 5. pre-engineering stage; 6. engineering stage; 7. operation stage; 8. project termination stage; The main activities to be developed during the four stages and their economic impact are pointed out below 7. 1. The pre-engineering stage will be finalized this year and it aims at the completion of the following objectives: • Continuous activities for the investigation of the deposits; • Support given by Minvest in view of shutting down the actual mining; • Reduction of the effects on the environment generated by mining activities from the past; • Financing activities; • Obtaining of agreements and licenses required for mining activities; • Detail engineering activities; • Bids for engineering and management contract (s) for construction ; • Purchase of properties and land assignment contracts required for project development; • Protection and assessment of the historical and cultural patrimony; • Relocation and moving activities; • Assistance for the local and regional development planning; • Coordination with the relevant concerned parties. We estimate that the significant impact on the area in this period is related to the purchase of the properties, the moving and the relocation of the population from the area. These activities will have a social impact firstly affecting the local population. Several consequences will be positive meaning that the moved or relocated population will benefit from compensatory amounts, over the market value before the initiation of the project with respect to the owned properties and they will live at higher standards in future. On the other hand, such moving and relocation will also have negative consequences as many families have to change their life style, the local community cohesion is affected and psychological implications towards the local environment, etc. The project initiation delay will increase the negative consequences on the population in the area, a large part of the properties being already purchased, the infrastructure construction required for moving will be delayed and an uncertainty status will exist that can result in local tensions. 2. The engineering stage will take 2-3 years. The works required for this stage will be contracted following a bid with companies specialized in engineering, purchase and management of the constructions. The operations developed in this stage mainly aim at constructing the infrastructure required for the project and the one required for moving the population affected by the project. The main activities in this period are: • Construction of moving infrastructure mainly employing local manpower and suppliers; • Moving or relocation of the population affected by the project; • Preparation of the location of the future carriers;

7 Roşia Montană Project – General Information, vol.7., page 10-14, May 2006.

• Opening and operation of the future carriers that will provide construction materials for roads, concretes, etc; • Closing or development of the existing mining on the project location; • The connection to the high voltage electric network; • Development of a water supply pipe from Arieş; • Construction of a new access road to Roşia Poieni; • Construction of the settling pond on Valea Corna and the secondary retention dam; • Construction of Cetate dam for the collection of acidic waters in Valea Roşia; • Construction of the cleaning plant for the mine acidic waters; • Construction of the drinking water treatment plant and a cleaning plant for the household waste water. The impact of this stage on the area is obvious. The arrangement of the location required for moving is a chance for the population that will benefit from the new locations where they will live in modern houses with access to utilities and services at the highest possible standard levels. Also a series of permanent facilities are created, that could also be used after the termination of the project by the local community or other investors. The construction activities are an opportunity for the companies in the field to develop their business in the area and offer additional possibilities for local population employment. 3. Operation stage is provided to last 16 years and consists of conventional mining activities of the surface carrier ore (drilling, blasting, loading, transportation), preparation and processing of the same. The mining will simultaneously start in Cetate and Cârnic carriers. Cârnic carrier mining is foreseen to terminate after 9 years and the one from Cetate will continue until the working-out of the deposits. The mining within Orlea and Jig carriers will start during the 7 th and the 9 th year respectively. Ore preparation and processing assume the following activities: • crushing and dumping; • wet grinding; • leach and adsorption; • electrolysis; • melting; • cyanide neutralization; • storing of processing tailings; • water recirculation. The economic impact on the area in this stage will be firstly noticed by the revenues obtained from the salaries of the employed people that will contribute to the improvement of the living conditions of the population in the impact area. The amounts will mainly be spent in the area, thus offering new business development opportunities and new employments accordingly. Also, the relations with the companies in the zone will be improved to the extent that the same will provide materials, fuels, services. The amounts transferred by the company to the local budget and the centralized budget of the state are significant and generate financial resources for the general development of the local community and the national economy. The project termination stage starts in the 14 th year of operation, when only the lean ore pile is to be processed and it will continue other two years since project termination. The scopes of this stage are: • The public health and social welfare safety; • Land geotechnical stabilization;

• Landscape restoration; • Life quality safety, etc; • Disposal of the plants that can no longer be used; • Delivery of the infrastructure and several useful plants to the local authorities and economic agents. It is important that by the shut down activities, the conditions for the restoration of the area with respect to the environment conditions are provided and the possibility of using the same for new economic and social activities in agreement with the extensive development requirements is provided. For the achievement of the scopes undertaken by RMGC in view of terminating the project, a certain financial guarantee is provided that the company has the obligation to submit it to a commercial bank, at the disposal of the authorities, thus actually providing the financing for the mining shut down operation during the project development.

3. DESCRIPTION OF THE IMPACT AREA

3.1. Delimitation of the impact area

A large part of the studies referring to the gold-silver resource mining project in the area focused only on the immediate effects on Roşia Montană locality, when the issue of the assessment of the zone impact of this project was raised. A systematic and overall approach of the impact issue should start from the assumption that between the localities in the area close economic, social and cultural relations exist, established along the years, so that the project impact will be noticed both directly and indirectly on the other localities nearby Roşia Montană as well, to which the research area should be extended. Starting from these considerations, the immediate impact area of Roşia Montană mining, respectively the area where the economic, social, cultural and environment effects of this mining are noticed directly and within the near future, covers the administrative territory of Roşia Montană and of the neighbouring localities, namely: Abrud and Câmpeni towns, Bucium, Ciuruleasa, Bistra, Lupşa and Mogoş communes (fig.3.1.1). The geographical positioning places the area between the parallels of 46°10' - 46°29' N. lat. and 22°55' - 23°16' E. long.

Judetul CLUJ

J u d . H U N E D O A R A 0 5 10 km Figure 3.1 – Immediate impact area of the mining

The access in the area is favoured by the national road DN 74 Alba Iulia - Abrud - Ciuruleasa - Brad and, from Abrud, further, by DN 74 A Abrud - Câmpeni. From these national roads the county and local roads are branched out facilitating the access to all the localities in the area. On the other hand, the impact, particularly the social-economic one, extends on a larger area, setting up the so-called extended impact area , that can extend on distances of several tens kilometres. Considering the communication ways, the mining activity areas, as well as the traditional relations among the villages from Ţara Moţilor, the extended impact area could include (fig.3.1.2): the higher and medium basin of Arieş, a part of the higher basin of o Crişu Negru (Băiţa-Nucet zone) from Bihor county, as well as the mining area Brad, from Hunedoara county. To the extent that the extended impact will be relevant for such areas, the appropriate aspects will be mentioned in the study.

M U N T E L E M A R E

R O H

I B

I I T N U M

I R E F I L A T E M

I U I A

T C N S U A M R T

I I T N U M

0 10 20 30 km Figure 3. 2 – The potential extension of the extended impact area

3.2. Geographical and administrative characteristics

The immediate impact area of Roşia Montană mining (fig. 3.1.1), is included in the medium hydrographical basin of Arieş river, within the limits of two important geomorphologic units of the Apuseni Mountains, respectively Muntele Mare in the northern half of the area and the Metalliferous Mountains in the southern half.

A. Relief . The general geomorphologic aspect of the immediate impact area is given by the mountainous relief, with characteristics determined by the diversity of the geological formations, the volcanic relief prevailing that alternates with the hill-like relief, formed on the sedimentation formations in the area of the important streams. The relief altitudes rarely exceed 1000 m, the

21 maximum ones being reached in the central part of the area (Dealul Gârdu-1054 m) and at the northern limit, in Muntele Mare. The relief portioning degree is high enough, due to the dense hydrographical network, the same as the portioning amplitude, if the minimum altitudes of 600 m are considered (on Arieşului valley, at the exit part from the territory of Lupşa commune) and the maximum ones, of more than 1000 m (in the massif from the western part of the carrier from Roşia Poieni and in Muntele Mare). The relief slope, considering the portioning amplitude, exceeds the average of 25 degrees that makes the area completely unfavourable for agricultural growing. On the other hand, the high inclination slopes favour the occurrence and development of natural risk areas, represented by landslides, stone falling, rock debris and layers of detritus, especially because of massive land clearing that has been practiced within the last years on the slopes of the mountains.

B. Geological description of the area Roşia Monatnă area, from the geological evolution view point, is included in the Southern Apuseni Mountains, area that acted as geosyncline area, under the name of Mureş geosyncline, since the beginning of Alpine orogenesis. The architecture of the petrographic structure (fig. 3.2.1.), shows a foundation consisting of crystalline formations, material that was recovered starting with the Middle Jurassic, when they were replaced by the formations belonging to the initial basic magmatism of laramic age. Over the crystalline formations from the foundation, the formations are placed, forming the sedimentary layer represented by limestone deposits, of various types (nodulous, massive, recifal), belonging to the Upper Jurassic, over which, in transgressive and discordant arrangement, the formations of Cretacic are developed, of flysch prevailing nature (alternance of poorly metamorphosed clay slate, aggregation, argillaceous sandstone, marls).

0 5 10 km

22 1Figure 3.2.1 – Geological map of Roşia Montană area (according to: the Map of the Geological Institute, sc.1:200000, Turda file) Neogene volcanism. During the Neogene period, on significant areas of Apuseni Mountains the last stage of Alpine magmatism, known as “Neogene volcanism” took place, being one of the most important geological phenomena that rendered morpho-structural aspects specific for this geomorphological unit. The volcanic activity developed on several cycles, starting from Badenian up to the Upper Pliocene was controlled by the structure of the Neogene sedimentation basins and by the pre-Neozoic tectono-magmatic elements, reactivated during the neogene eruptions. The volcanic activity was accompanied by extensive metallogenetic processes. The volcanic formations are unequally distributed in several dispersed zones along oblique alignments towards the direction of Muresului geosyncline that superpose with the inter- mountainous post-tectonic depressions, namely: Beiuş-Brad-Săcărâmb region, Zlatna-Stănija region, Bucium-Roşia Montană- Baia de Arieş region and Mureşului Valley region. The strongest evidence of the neogene volcanism are located in the central and north- western part of the Metalliferous Mountains, the resulted petrographic products being represented by various types of riolite, dacite, andezite and basalt. The study of the relations among the neogene eruptive formations and between the latter and the sedimentary formations nearby the eruption centers wherein the volcanic products inserted, allowed the determination of three distinct evolution stages corresponding to three significant eruption cycles wherein several eruption sequences or phases can be distinguished, characterized by rock associations with specific petrochemical features. The products of the first cycle , occurred during the lower Badenian, represented by riolite and andezite, have been recognized on smaller areas in two regions of Southern Apuseni. The second cycle , occurred since the upper Badenian until the Panonnian is the most important both by the intensity it acted and the volume of the volcanic material resulted following the eruptions. In the petrographic products resulted following the three phases of this cycle, dacite and andezite prevail, having numerous types and varieties. In the third cycle the volcanic activity is less intense and of shorter duration (Panonnian- Pleistocene), being represented by andezite and basalt in the marginal zones of the geosyncline. Out of the three cycles of neogene magmatism, only the second cycle was accompanied bby significant metallogenetic processes causing the formation of the well known gold-silver and polimetal mineralization within the so called “auriferous quadrilateral” of Metalliferous Mountains.

The auriferous metallogeny of Metalliferous Mountains. Considering the particular interest in the recovery of the auriferous deposits, interest due to the ever increasing demand on the world market for this metal, applied in top technologies nowadays, as well as the new concepts regarding the sustainable development, the information not only of the specialists but also of the public opinion is required, with respect to the known gold reserves in order to mitigate the opinion that the extensive mining of an auriferous deposit could result in the exhaustion of the resources of this metal and the endangering of the socio-economic life of the next generations. Based on such assumptions, we consider that a synthesis is useful, not necessarily exhaustive, but informative, on the auriferous reserves of the Metalliferous Mountains, for part of the suspicions related to the exhaustion of the gold reserves at least, should be diminished or removed. From the view point of metallogenetic regions, the Metalliferous Mountains belong to the Metallogenetic province of the Apuseni Mountains, Sub-province associated to the neogene volcanism (fig. 3.2.2.)

Cornet LEGENDA Subprovincia Apusenilor de Nord Poni a- Poieni Bratca- Subprovincia asociat magmatitelor mezozoice Subprovincia concentra iilor asociate magmatismului paleogen (banatitic) Zece S c tura-Ana Hotare Subprovincia metalogentic asociat vulcanismului neogen R ca - Ro ia- Disitrict metalogenetic V.Vida Albioara Sector metalogenetic Meziad P D U Câmp metalogenetic REA C RA IUL UI Reme i R d in c er h S i

l Gingineasa e Aluni - i Leurdi eri .I -V e ald c ul C e me R So le te

u M

r a Pa o d i i

B r lo i e i G B IL l. U D B i a Bihorului a E iu I c R l A -S c i V E r n Moneasa A C u u D U t R s A I u r A B B

- Brusturi a

C lug ri n Ro ia Montan a

i Ro ia Poieni o

P Râul Mic

- Baia de Arie

c RO I A M n ONTAN -BUCIUM

u L BAIA DE A RIE HIGHI -DROCEA lui u umanu- Con u- ndu Arama- .Pru Mormântu- Baba-Alma a -V Corabia Sec Caraci Vf.Ciungilor Izvorul u -Highi a B V.Tisa St nija Soim av C z n e t i- RA Ampoiului ce D-S Bu Ciungani C RÂM roa B Propestenia-Trâmpoiele Monor tia i -T l Fa a B ii Baia t u e Bucure ci- Breaza ne No i Larga âr ia Va e Rovina P o lm reaua Hane R A gu ZL M Barza Cordurea- ATNA i a Pietri Cerburea -ST N I Dumbr v - Toc Techereu JA Alma -S li te Cerbia Câinel- V li o ara Toc .Mare Ce Juli Dl B i a tra a Vor a ti T m e M cri S v âr i n S v âr i n-Teme e t i Trestia-M gura Hondol V. B n ie u lui S c râmb Figure 3. 4 - Metallogenetic regional divisionBulza of the Apuseni Mountains Deva dupa: Gh.C. Popescu, 1986 Considering this issue with respect to metallogenetic regions, the status of the gold reserves is as follows: 1. Brad-Săcărâmb metallogenetic region (fig.3.2.3.) represents the most extended metallogenetic unit within the sub-province being particularly characterised by gold-silver mineralization associated to the neogene volcanic units. All the metallogenetic fields of this region include gold-silver mineralization, mainly referring to recovered or in course of recovery deposits. The metallogenetic fields of the region have been separated in two groups [Gh.C.Popescu, 1986], namely the fields on the southern-western side of the region and the fields on the northern-eastern side of the region.

The group of the fields on the southern-western side of the region includes: - Caraci metallogenetic field, wherein gold is included in a complex filonian system, most of the veins being already recovered, but stocks that could make the subject of new future recoveries have also been relieved; - Barza metallogenetic field including several groups of auriferous veins, besides the polimetal veins, most of the auriferous veins being recovered, but the complex structure of Barza volcano still has significant metal reserves; - Câinel-Băiţa metallogenetic node includes the mineralized structures from Băiţa valley basin, namely Căinel, Băiţa and Draica , including significant auriferous filonian systems,

most of them recovered, but the future extension being very optimistic. - Trestia-Măgura-Hondol metallogenetic node , including Troiţa-Măgura metallogenetic field , wherein several filonian groups are included (Trestia, Magdalena, Troiţa) and Măcieşu- Măgura filonian group , where the gold-silver veins prevail, also including polimetal mineralization; - Săcărâmb metallogenetic field was known due to the presence of free tellurium and gold and silver tellurium, representing one of the most important auriferous metallogenetic fields, with still unexpected reserves.

LEGENDA

Vulcanite neogene Structuri metalogeneticeneogene Au ± Ag Au, Ag, Te

Falii

C Va a de Jos ri u l Bucure ci A lb BRAD T Caraci e ch Barza er eu

l Draica e B i a n i â C

Trestia-M gura

0 2 4 6 8 km.

S c râmb Certeju de Sus

Figure . 3.2. 3. - Brad-Săcărâmb metalogenetic region (according to: Map of mineral resources, 1983)

The group of the metallogenetic fields on the northern-eastern side of the region is characterized by the presence of gold-silver-polimetal mineralization. The metallogenetic units included in this group ( Măcriş structures of mineralization, Cetraş structure mineralization, Vălişoara metallogenetic field, Cordurea-Cerburea volcanic structure, Bucureşci-Rovina metallogenetic field ), have been less recovered, many of the mineralized structures being under various research stages, so that the gold-silver potential of this group of metallogenetic fields is far from being foreseen.

2. Almaş-Stănija metallogenetic region includes polimetal and gold-silver deposits (fig. 3.2.4.), included along tectono-volcanic alignments with NW-SE orientation. The gold-silver mineralization within this region are not as extended as in Brad-Săcărâmb region, but the research of many of them is only under the heavy prospecting phase by means of

26 the underground mining works (galleries)

St nija Vf. Ciungilor 0 24 6 8 Km

Tisa Trâmpoiele Munc ceasca Runcul i Hane

ZLATNA Alma u Mare Am po Breaza i LEGENDA Vulcanite neogene Structuri metalogenetice neogene Au ± Ag

Au, Ag, Te A rde u Falii

Figure. 3.2.4. - Zlatna-Stănija metallogenetic region (according to: Map of mineral resources, 1983)

The metallogenetic units of the region do not consist of metallogenetic alignments [GH.C.Popescu, 1986], the mineralization being characterized by the association of the following metals: free Au ± tellurium; auriferous pyrite; Au ± Pb, Zn and Cu; Pb, Zn, Cu ± Au; Cu,Au; Mo, W ± Cu: - Haneş-Breaza metallogenetic alignment includes two filonian fields ( Breaza and Haneş ), where the auriferous mineralization is as free gold pockets or impregnated in the quartz mass forming the vein filler; -Prepeştenia-Trâmpoiele metallogenetic alignment includes two filonian fields namely Faţa Băii and Larga , where the mostly pyrite impregnated mineralization at its upper part is of auriferous nature, and depthwise it is rich in Pb and Zn still keeping the auriferous nature; - Tuţumanu-Baba-Almaş metallogenetic alignment develops in line with Haneş-Breaza alignment, towards south-west and includes three metallogenetic fields: Ţuţumanu, Baba-Băbuţa and Almaş , the recovery of several deposits of these fields being initiated long time ago; -Neagra-Dealul Ungurului metallogenetic alignment shows a gold-silver-type metallogenesis within the main metallogenetic fields ( Muncăceasca Est, Muncăceasca Vest and Stănija ), the free gold deposited during the last mineralization phase, breccia veins being highly mineralized by galena, blende, altait and free gold. aurul Zlatna-Stănija metallogenetic region also includes Mormântu-Vârful Ciungilor metallogenetic fields (of minor economic interest) and the one from Tisa valley basin and Dealul Runculeţi , in its veins, partly recovered, the free gold being also present.

3. Roşia Montană-Bucium-Baia de Arieş metallogenetic region shows two large volcanic structures and eruption centres generating an extensive gold-silver metallogenesis and of “porphyry copper”- type (fig. 3.2.5.).

The region has the characteristics of a real metallogenetic alignment, wherein three metallogenetic nodes are distinguished: - Conţu-Arama-Corabia metallogenetic node that, with respect to the gold-silver mineralization, covers several vein groups, namely: Arama filonian group , consisting of a central vein with several branches; Corabia filonian group , featuring areas with high contents of gold, located at the vein intersection, in the so called “crosses” areas and Boteş filonian group , where gold is finely dispersed or as pockets;

Bistra Baia de Arieş Lupşa

Roşia Montană

Bucium

Izbita

LEGENDA

Vulcanite neogene Structuri metalogenetice neogene Au ± Ag

0 2 4 6 8 km Au, Ag, Te Falii

Figure. 3.2.5. - Roşia Montană-Bucium-Baia de Arieş metallogenetic region (according to: Map of a mineral resources, 1983)

- Baia de Arieş metallogenetic node includes a strong polimetal-auriferous metallogenesis, distributed in two metallogenetic fields: Afiniş metallogenetic field , covering mineralization distributed in two stocks, the gold being present in association with sulphides, sulphur salts or argentite, most veins being already recovered and Ambru metallogenetic field , showing a polimetal-nature paragenesis, associated to several metasomatic bodies, less important with respect to the gold-silver parageneses; - Roşia Montană - Roşia Poieni metallogenetic node is one of the most important concentration of metallogenetic nature of the entire metallogenetic Province of the Apuseni Mountains. This metallogenetic node has two mineralized structures, one being famous since ancient times - Roşia Montană, with gold-silver paragenesis, the other one being the first “porphyry copper” – type structure recovered in Apusenii de Sud.

Within Roşia Montană-Roşia Poieni metallogenetic node , a particular interest with

28 respect to the gold-silver mineralization is shown by Roşia Montană metallogenetic field . The field metallogenetic components (stockworks, veins) are closely associated and controlled by Roşia Montană volcanic structure that occurred in all the three eruption phases of the neogene volcanism. During the final stage, the volcanic activity of highly explosive nature resulted in the formation of several breccia columns and creases and cracks that represented access ways of mineralizing hydrothermal solutions and the collecting centre of gold-silver mineralization. The most important accumulations of such type were concentrated in the breccia area, the same being recovered since the Roman period. The main mineralization bodies of the field are found in Cetate and Cârnic hills, each representing a separate group of mineralized bodies. Thus, Cetate group includes the mineralized stockworks: Roşeţu-Ştefan-Contact; Iuho-Ierusalim-Chinga; Racoş-Mangan-Cetate; and the veins: Custura, Afiniş, Crucile Afinişului, Scaunele Cordeiului , all being almost entirely recovered, the remaining being only the impregnation areas, recovered in the carrier. Cârnic group includes the stockworks: Cănţălişte, Tisa, Cotroanţa, Corhuri, Sponghie and Benţă , as well as the veins: Glam, 31, 35, Vâna Mare, Răuţii, Biscorul, Capra, Drotul etc.In the north- western part of Cârnic hill the silver veins Draica and Napoleon have been recovered, as well as their branches. In the southern area of the same hill, the old mining works recovered Clopari and Piatra Despicată veins (branch of Glam vein). The extensive mining activity that has continuously extended for more than two millenniums, resulted in the almost total recovery, by mining works, of the filonian gold-silver mineralization and the stockwork ones, as well as the carrier recovery, nowadays, of the impregnation area surrounding the veins and the stockworks, so that the continuation of depthwise recovery of the mineralized bodies involves very costly technology and works.

C. Hydrography and hydrogeology The main hydrologic axis of the area is represented by Arieş river, going through the central area of the perimeter, running in the west-east direction, delomitting the two major geomorphologic units, namely Muntele Mare in the norther part and the Metalliferous Mountains in the southern part. Arieşul gathers its affluents from both sides, the most important from the flowrate view point being the ones from the southern side. The main affluent of the southern side is Abrud that, in its turn, collects the waters of the valleys Roşia, Vârtop, Sălişte, Corna and Henţa , active along the year. Valea Abrudului is of torrential nature, mainly occurring in spring with snow melting and the heavy rains during this season, after which the flowrate decreases until the heavy summer rains, the lowest flowrates being recorded during summer-winter. Valea Roşia , whose flowrate is located in tăul Ţarina , collects all the mine waters and of the actual mining carriers, becoming one of the most polluted water streams in the area, and not only, pollution further transmitted to Abrud and Arieş. Valea Vârtopului has its springs below Zănoaga peak, and meets Abrud in the area of Cărpiniş. Pârâul Sălişte, is also tributary to Abrud river, on whose route a settling pond being arranged. Valea Corna spings from tăul Corna and flows into Abrudului valley on the territory of Abrud. Apart from Abrudului valley, Arieş also collects, from the southern side, the waters of Muşca and Şasa valleys, the settling ponds from Roşia Poieni mining being arranged on the latter. From the northern side, Arieşul collects the water of several streams, with lower flowrate, namely: Bistra, Valea Mare, Dobra, Lupşa and Valea Caselor , valleys with their springs on the southern side of Muntele Mare, flowing in the north-south direction. Besides the above mentioned water streams, of permanent nature, water streams of semi- permanent nature, torrential as a rule, with maximum flowrates during spring, can be noticed in the area during the heavy rain period.

The lakes in the area are, most of them, of anthropic origin, being arranged on the route of Roşia and Corna valleys, in order to be used for the operation of the stamp mills processing the auriferous ore, at the beginning of the XX th century, about 120 such water accumulation being available. The same have been arranged at altitudes of over 950 m, only 5 of them remaining until now, the most important in terms of sizes, being Tăul Mare , followed by: Ţarina, Corna, Brazi and Anghel, their characteristics being shown in the table below.

Table 3.2.1. Lakes surrounding Roşia Montană Altitude Dam height Maximum depth Average depth Area Volume Si.no. Name (m) (m) (m) (m) (m 2) (m 3) 1 Tău Mare 1000 25 10, 0 4, 9 32120 160600 2 Tău Ţarina 950 10 4, 5 2, 6 10480 27300 3 Tău Corna 961 - 3, 6 1, 8 8830 15930 4 Tău Brazi 950 10 5, 5 3, 0 7800 22000 5 Tău Anghel 987 - 4, 5 2, 0 4250 8500 (According to Nicolae Breazu and Vasile Ştef, 1980)

These lakes are mainly supplied by the rain waters flowing on the sides. Anghel and Brazi lakes benefit from the contribution of small streams supplementing by about 2-4 l/sec., the supply from rains. Now, such pools are used for leisure and sportive fishing purposes. With respect to the underground waters, due to the low cracking magmatic formations prevailing in the geological structure, the same have not allowed the accumulation of significant reserves. Neither the geological prospecting made in the area have highlighted a significant aquiferous layer, that can be explained by the discontinuity of the sandy formations from the jurassic and cretacic deposits. The surface sedimentary deposits, although showing adequate characteristics for water accumulations, are of low thickness, so that they cannot provide favourable conditions for accumulation. However, the existence of low underground accumulations, at the limit between the magmatic and the sedimentation formations, is proved by numerous springs active during the periods with maximum precipitations, during the rainless summer periods, the flowrates being extremely low. Several captive water nappes have been detected, located in the adobe deposits following the rain water accumulation that can sometimes occur as temporary springs at the surface.

D. Climate aspects of the area The central part of the Apuseni Mountains, where the immediate impact area of Roşia Montană mining is located, shows the climate aspects of temperate-continental type, the higher areas showing a mountainous climate with cold winters and heavy snow falls. The average multiyearly temperature is around the value of 6°C, with specific season variations. The average winter temperatures show values -5.5°C, during warm season, the same reaching up to 16-17°C. The first frosts are noticed around the date of October 1, the snow layer maintaining until around the 1 st of May. As a rule, the snow layer thickness is of 35-40 cm, and 1.5 m in the snowed up areas. The average multiyearly precipitations are around the value of 1200 mm/m 2, the precipitations quantity significantly affecting the other climate indicators. The maximum precipitation amounts are specific for spring, the torrential rains being specific for summer. The prevailing winds are the western ones, to which the hot air stream of “föehn” type

30 are added, accelerating snow melting resulting in the increase of the river level and flowrate. The average wind rates show values of 1.4-4.8 m/s, the highest values being recorded in case of SW and W direction winds. The “calm atmosphere” time ranges are in January, July-August and October-November.

D. Pedological aspects The soil groups specific for Roşia Montană area belong to the cambisoil classes (Eu- mezobazic brown soils and acid brown soils) ant the non-evolved , truncated or cleared soil classes (regosol, coluvisol, litosol soils). The soil blanket is a surface layer with variable thicknesses (0.4-1.5 m), completely absent in several places, the vegetable soil frequently showing several elements of dacite or sandstones. From the view point of agro-technical quality, the soils in the area are not adequate for the development of extensive agricultural crops, thus favoring the living agriculture.

E. Fauna and flora On the highest peaks of Muntele Mare the vegetable groups specific for the alpine level covering the “mountain holes” located outside the climate limits of the forestry vegetation, are extended. The vegetation of this level is represented to the highest extent by lawns consisting of graminaceae ( Festuca, Agrostis, Helictotrichon ). Often, such lawns are degraded following the abusive grazing favouring the invasion of matweed ( Nardus stricta). The alpine level also includes bush associations mainly consisting of bilberry bush ( Vaccinium gaultherioides). At lower altitudes, the sub-alpine level develops, including the glades from the upper limit of the spruce fir area, as well as the juniper tree ( Pinus mugo) and juniper bush ( Juniperus communis ssp.nana) thickets, making the transition between the forestry zone and the alpine level. Actually, due to the juniper tree clearing a well as most of the glades, the actual vegetation of the sub-alpine level is mostly represented by secondary lawns of red hair grass ( Festuca rubra) and matweed ( Nardus stricta) , frequently covered by a multicolour carpet of Campanula and Viola. Often, the determination of the real limits of the sub-alpine level is difficult due to replacement of the climate limits of the vegetation by artificial ones. Also, within the sub-alpine level, the high weeds of the mountain streams growing particularly along the torrents, reach a luxuriant development. Such weeds, accompanied sometimes by mountain alder tree ( Alnus viridis) also include numerous species such as Adenostyles kerneri, Doronicum austriacum, Heracleum palmatum, Carduus personata, Cicerbila alpina, Angelica Archangelica, Aconitum tauricum etc. In the mountainous level a sub-level of spruce fir forest is distinguished (superior) and a sub-level of beech forest (inferior). Referring to a series of local factors and particularly the moisture variation, the altitude limits of the mountainous level and the ones of the above mentioned sub-levels vary between wide enough ranges. It can be however stated that the limits of the mountainous level are between 400-600 and 1600-1700 m. The spruce fir forests ( Picia abies) form a compact area in the central part of Muntele Mare. However, the actual area of the spruce fir forests does no longer correspond to their climate area. Both the old clearings made by the indigenous population, who tried to extend the perimeters of the grazing lands and the forestry recovery from recent times, contributed to this restriction of the spruce fir forest area. Although the initial extension of the beech forests was considerably changed by the human intervention, like in the other Carpathian massifs, however the same still represent the most important component of the forestry patrimony of the area. The most extended forests in the mountainous valleys are represented by the pure beech forests or together with the fir tree and the spruce fir tree. At the lower vegetation limit we can also find the common oak ( Quercus petraea), representing combinations in the transition area.

The afforestation degree is high enough, the forest areas exceeding 50% of the area, the bush vegetation being of mixed type, namely a mixture of leaf-bearing woods and conifers , that can be explained by the location in the transition area from the leaf-bearing woods to the conifer ones. The forests in the area are mainly populated by mammals, such as: bear, wolf, wild boar, fox and common badger, besides the various species of stags and goats, the Carpathian stag being lately colonized, in the Apuseni Mountains as well. Among the birds of the extensive spruce fir woods, we may specify: jay or nutcracker, in the limestone regions the bunting can be frequently seen. The mountain streams are particularly populated by trouts. We may conclude that, from the biological view point, the fauna and the flora of the area is very complex and the maintaining of this variety and wealth in future depends on its judicial use and the exploitation degree.

F. Administrative characteristics

The immediate impact area of Roşia Montană mining, as delimited (fig. 1), is entirely located on the territory of Alba County, in the north-western part of the same, at the border with two neighbouring counties, namely Cluj County in the northern part and Hunedoara County in the south-western part.

The main locality in the zone is Câmpeni town, considered “the capital of Ţara Moţilor” , the place where the main communication ways meet, connecting Ţara Moţilor with Alba Iulia (DN74, DN74A), Turda (DN75) and Beiuş (DN75). The town also includes in its administrative territory the following villages: Valea Caselor, Floreşti, Boteşti, Şorliţa, Mihoeşti, Motorăşti, Dealul Bistrii, Valea Bistrii, Borleşti, Tomuşeşti, Peste Valea Bistrii, Certege, Coasta Vâscului, Dric, Dealul Capşei, Bonceşti, Poduri, Dânuţ, Faţa Abrudului, Vârşi and Furduieşti. The total town area is 86.6 ha, out of which 81.5 ha inside the town and 5.7 ha outside the town. The population of the locality is of 8080 inhabitants, distributed in 2050 households, covering 2886 houses. The specific economic activities of the zone are: wood industry, food industry, light industry, services and constructions.

Abrud town , located in the southern part of the area is also an important road node, wherefrom the roads to Brad (DN74), Câmpeni (DN74A) and Alba Iulia (DN74) start. The town also consists of the following villages: Soharu, Abrud Sat, Dogăreşti and Gura Cornei. Abrud, by means of its geographical position is an area of intersection between the national transportation roads (DN74 and DN74A), which insure the connection with the towns of the county (Câmpeni, Zlatna, Alba Iulia), as well as with the neighboring counties (Bihor, Hunedoara, Cluj). Although in an advantageous position because of its geographical location, Abrud has an underdeveloped transportation system, and the lack of invested capital in this domain has raised a barrier against the economical development of the town. The insufficient modernizations of the main national roads, the lack of an international highway and of railway transportation have as a result the insufficient exploitation of the advantages offered by the geographical position of the town. The area is 320 ha (inside the town - 192,18 ha, outside the town - 127,82 ha ) The population amounts to 6213 persons, distributed in 735 houses.

The specific activities of the area are related to the following fields: mining, wood processing and light industry, the town being included in the category of disadvantaged area.

Roşia Montană commune is located in the central part of the immediate impact area, being connected via the county road DJ742, with the national roads DN74 and DN74A. The commune also includes the following villages: Cărpiniş, Coasta Henţii, Iacobeşti, Soal, Vârtop, Gârda-Bărbuleşti, Ţarină, Ignăteşti, Blideşti, Balmoşeşti, Muntari, Bunta, Curături, Dăroaia, Gura Roşiei and Corna. The area of the commune is 4346,72 ha (262,13 ha inside the commune and 4084,59 ha outside the commune). The population amounts to 3865 inhabitants, distributed in 1200 households with 1500 houses. The specific activities of the area are related to tourism, animal breeding, mining, the main economic activities being the mining and the commerce.

Ciuruleasa commune is located in the south-western part of the area, at the border with Hunedoara County on the national road DN74, connecting Abrud and Brad. It consists of the following villages: Bodreşti, Bidigeşti, Bogleşti, Vâlcan, Morăreşti, Mătişeşti, Gheduleşti and Buninginea. The area of the commune is 5585 ha (3403 ha, inside the commune and 2182 ha outside the commune). The population amounts to 1368 inhabitants, distributed in 415 households with 475 houses. The specific economic activities of the area are related to: agriculture, animal breeding, mining, and limestone processing, the main activity being wood processing. The commune is included in the category of disadvantaged area.

Bucium commune is located in the south-eastern part of the area, south from Roşia Montană, on the national road DJ1071, connecting Aiud and Abrud and it also includes the following villages: Bisericani, Floreşti, Hileşti, Văleni, Valea Abruzel, Petreni, Poiana, Jurcuieşti, Vâlcea, Valea Şesii, Cerbu, Valea Cerbului, Valea Poienii, Bucium-Sat, Coleşeni, Izbita, Gura Izbitei, Izbicioara, Ciuculeşti, Lupuleşti, Poieni, Stâlnişoara, Valea Albă, Angheleşti, Dogăreşti, Măgura, Muntari, Petreni, Poiană, and Valea Negrileşti. The area of the commune is 8570 ha (942 ha, inside the commune and 7628 ha outside the commune), located in disadvantaged area. The population amounts to 1780 inhabitants, distributed in 724 households with 923 houses. The specific activities of the area are related to: animal breeding and agricultural tourism and the main economic activities are: food and non-food product sale, wood cutting and sale and mining.

Mogoş township, situated at the south-eastern extremity of the immediate impact area, on county road DJ107I, which links the towns of Aiud and Abrud, has, next to the township center, the following villages and townships in its territorial-administrative component: Bărbeşti, Bârleşti, Bârleşti-cătun, Barzogani, Boceşti, Bogdăneşti, Buteşti, Cojocani, Cristeşti, Mămăligani, Negreşti, Onceşti, Poienile Mogoş, Tomeşti, Valea Bărluţeşti, Valea Barnii, Valea Coceşti, Valea Gioreşti, Valea Mlacii, Valea Tupilor.

The surface of the township is of 8133 ha, from which 5693 ha inside the village areas and 2440 ha outside those. The population is of 1050 people, divided up into 453 households, which house 470 homes. The activities specific to the area are: animal husbandry, forest explotation, commerce and mining. The township also has numerous tourist objectives, among which the most important Poiana Narciselor, Poieniţa, Detunatele and Cheile Râmeţului.

Bistra comune, located in the northern part of the area and the county, in the vicinity of Cluj County, on DN75 Turda-Câmpeni is considered the commune with the largest area in our country (area – 11838 ha, inside the commune – 998 ha, outside the commune – 10840 ha). The commune includes the following villages: Dâmbureni, Coasta Vâscului, Răţitiş, Sălăjeşti, Hudriceşti, Poiana, Aroneşti, Cheleteni, Durăşti, Băleşti-Cătun, Băleşti, Hodişeşti, Ciuldeşti, Dealul Muntelui, Găneşti, Gârde, Novăceşti, Trişoreşti, Runcuri, Poiu, Ţărăneşti, Nămaş, Lunca Merilor, Creţeşti, Mihăieşti, Vârşii Mici, Vârşii Mari, Rontu, Lunca Largă, Ştefanca, Bârleşti, Tolceşti, Nămaş, Lipaia, Rătitiş, Tomnatic and Prejeşti. The population amounts to 5066 inhabitants, distributed in 1466 households. The specific activities of the area are related to: wood cutting, processing and sale, furniture production, services, public nourishing and trade, animal breeding.

Lupşa comune, located in the eastern part of the area, on DN75 Turda-Câmpeni; the commune includes the following villages: Mănăstire, Valea Lupşii, Piţiga, Poşogani, Muşca, Lazuri, Trifeşti, Lunca, Hădărău, Poşogani, Pârâul Cărbunarilor, Văi, Curmătura, Şasa, Geamăna, Bârdeşti, Valea Holhorii, Lunca, Valea Şesii, Mărgaia, Bârzani, Holobani, Dupădeal and Vinţa. The area of the commune is 10360 ha (238 ha, inside the commune and 10122 ha outside the commune). The population amounts to 3867 inhabitants, distributed in 1374 households with 1320 houses. The specific economic activities of the area are related to: agriculture, animal breeding, mining, forestry recovery and constructions, the main economic activities at present being: clothing, mining, wood recovery and processing, the commune being located in a disadvantaged mining area.

3.3. Historical and cultural aspects

A. The history of the researches to Roşia Montană The interest for the ancient vestiges from Roşia Montană, existed ever since the XV th century. The epigraphic and sculptural material, discovered in the area of the mining exploitations from Alburnus Maior is significant in comparison with the relatively limited geographical area from which it came. Its value should be noticed as well, through its documentary contribution in what the social-economic history of the province of Dacia represents. These pieces were the object of the historiography preoccupations ever since the late Humanism period, in fact, ever since, the first information related to the discoveries of the Roman Age from Roşia Montană area dated. In this way, these Roman monuments were noticed by different chroniclers, antiquarians, 34 foreign travelers who came in Transylvania with political, military or diplomatic missions, ever since the XVI th - XVII th centuries. It is the case of Ioannes Mezerzius (1470-1517), archdeacon at Cojocna and then canon at Alba Iulia, who described in his epigraphic collection, an epitaph (CIL III 1262) found at that time in Abrud, in a church, the piece coming most likely from Alburnus Maior region 8. Still in XVI th century, a French traveler who was studying in Padova, Pierre Lescalopier, recorded in his paperwork, remained in the manuscript, the copy of some Roman inscriptions, inserted in the walls of the locals’ houses, from the same gold-bearing region between Zlatna and Abrud. A range of preoccupations related to the historical vestiges from the region had as well Martin Opitz, a representative figure of the Transylvanian Humanism from the beginning of the XVII th century. Thus, this one, during the period in which he activated as a teacher in Alba Iulia, at the middle school of the prince of Transylvania Gabriel Bethlen (1613 – 1629), he copied a series of inscriptions from Alba Iulia – Zlatna region. His manuscript, with the title Dacia sive Rerum Dacicarum Commentarius was lost, but a part from its published inscriptions can be found in Janus Gruterius paperwork, Thesaurus Inscriptionum , the second edition. Giuseppe Ariosti’s contributions date from the same period, an Italian aristocrat, captain in the Austrian army, during the emperor Carol the VI th (1711-1740). Participating at the construction works of the city Alba Iulia, Ariosti drew sculptural monuments and copied inscriptions. He intended to send this epigraphic material – on the water way- to Vienna and unfortunately, a part from the boats with which the transport was effectuated sank, and other pieces were destroyed after arriving in the capital of Austria, while others were built within the walls of the National Library from Vienna. Ariosti’s manuscript, preserved in three copies in Vienna, Verona and Venice is named Iscrizioni antiche trovate e raccolte tra le rovine delle quattro principali colonie Romane della Transilvania (Ulpia Traiana, Apulum, Abrud-Zlatna, Turda) dal conte Gioseppe Ariosti nobile Bolognese, Ferrarese e Senese, capitano d'infanteria nel reggimento Gaier, e parte di esse dal medesimo condotte în Vienna d'Austria per comando della sacra Cesarea Cattol. Real Maesta di Carlo VI Imperatore de'Romani l'anno MDCCXXIII. The antiquities from this region entered the humanists’ vision especially beginning with the second half of the XVIII th century, when the Sovereign Chancellery had the initiative of modernizing the mining, and by the authority of the central and local mountainous state bodies (genuine mining companies avant la léttre ) a large improvement work of the region from the point of view of specific industrial infrastructure was initiated (artificial mires, ditch networks, stamp head locations, installations of primary work and preparation). Theses interventions on the primary configuration of the landscape from the perimeter of Roşia Montană had, among other consequences, also the discovery of certain different archeological pieces. As well, within the first decades of the XIX th century (the period between 1830-1840), the erudite from Vienna Anton Steinbüchel, the director of the Imperial Cabinet of numismatics and antiquities from Vienna, intending to publish a Corpus inscriptionum antiquarum imperii Austriaci , initiated, appealing to the administrative authorities, a large action of covering and of copying epigraphic monuments throughout the Empire of Austria-Hungary with the clear aim of creating “a clear image on the situation of certain region which had been at one time under Romans’ domination”. As a response of the imperial official’s request, the supreme leader of Abrud, Csajka Joszeph, recorded by a formulation ambiguous enough, the destruction of certain inscriptions by throwing them in the Gaurilor lake. 9.

8 IDR, III/3, p. 409 – 410, no. 418. 9 N. Lascu, ActaMN, 5, 1968, p. 137 - 142; IDR, I, p. 47; V. Wollmann, Mineritul ..(The mining..) , 1996, p. 12, no. 16. 35

It’s also meritorious the activity of Ignatius Reinbold, cameral doctor on the Zlatna region, within 1811-1846, who, between 1836-1842 created a manuscript album with drawings of monuments and inscriptions from Alba county, made in aquarelle black-grey, named Monumenta Romana quae anno 1836 în Dacie loci delineavit nunc vero a. 1842 ad usum musei Transilvanici noviter descripsit . The 39 monuments recorded in Zlatna area are very important. The manuscript was seen by the doctor Lugosi Fodor András from Deva and by J. F. Neigebaur (1783-1866), consul and assessor of Prussia at Bucharest, who, making a trip in Transylvania recorded monuments, inscriptions, archeological materials in his paperwork Dacien aus den Ueberresten des klassischen Alterthums, mit besonderer Rücksicht auf Siebenbürgen. Topographisch zusammengestellt, Kronstadt (Braşov) 1851. Coming back again to Lugosi Fodor András’ contribution, we should not forget the very precise information contained in his paperwork, remained as well in the manuscript, Führer durch Siebenbürgen für Freunde vaterländischer Alterthümer în verschiedenen Teilen und Ortschaften finished around 1840. In the volume VII of this paperwork, preserved in the library of the museum “ Ardelean”, a series of sculptural and epigraphic monuments were reproduced, especially with funeral character, discovered in the first half of the XIX th century at Roşia Montană. A special category of discoveries is the small waxed plates found by accident within the XVII th -XIX th centuries in the ancient mine galleries from Roşia Montană. Being special by their singleness and content, these epigraphic documents – whose text is preserved until the present – are 25 in number (the initial number of the discoveries being probably 30) 10 . The discovery of these ones was brought about by the same sudden change of the mining activity which started during the reign of Maria Theresa (1740-1780) and of Joseph the second (1780-1790). The brief history of the discovery of these important epigraphic sources are the following chronological points: 1786 – at the foot of Rotunda mountain, at the North-East of Roşia Montană, in a gallery of the mine “St. Laurence” 11 ; 1788 – in Letea mountain (Lety), situated in the East of the historical centre of the locality Roşia Montană, in a side gallery of the mine “St. Joserph” 12 ; 1790 –Letea mountain (Lety) 13 ; 1791 – Letea mountain (Lety), in a gallery of the mine “St. Joseph” 14 ; 1820 (1824) – in Cârneciul Mare mountain, at the South of the historical centre of the locality Roşia Montană, in the mine “St. Ladislau”15 ; 1854 in the gallery “Ohaba – St. Simion”, situated at the West of Cornei mire, in the region from the South of Roşia Montană, towards the village of Bucium, 11 small waxed plates were discovered, from which 9 entered the collections of the National Museum from Budapest, and two of them in the collections of National History Museum of Transylvania from Cluj 16 ; 1855 – in an abandoned gallery of the mine “St. Ecaterina” (“Cătălina – Monuleşti), situated in the historical centre of the locality Roşia Montană, mining installations, fragments of wooden constructions for the consolidation of the mine walls, a wheel for evacuation of the water in the case of mine flood, clay and wooden bowls, rush lights and ancient mining tools and more small waxed plates (10) have been

10 The number of the first discoveries will have probably been over 40, but the ones certainly identified untill the present are 32 in number (3 were lost meanwhile, but after publication), the proper pieces being found in the present in the collections of the museums of Aiud (2 parts of a triptych), Bucharest (2 small plates), Cluj (11 small plates, from which 6 are new), Sebeş (a new small plate), Budapest (13 small plates), as well as the ones of Battyaneum Library from Alba Iulia (one small plate) and of the „Timotei Cipariu” Library from Blaj (2 small plates). 11 I. I. Russu, StComSibiu, 12, 1965, p. 68; IDR, I, p. 172, 206 – 209. 12 IDR, I, p. 172, 192 - 198; RepAB, 1995, p. 161, no. 13. 13 IDR, I, p. 173, 198 - 201; RepAB, 1995, p. 161, no. 13. 14 IDR, I, p. 173; RepAB, 1995, p. 161, no. 13. 15 J. F. Neigebaur, Dacien .. , 1851, p. 191; IDR, I, p. 173, 253 - 254; RepAB, 1995, p. 160, no. 11. 16 IDR, I, p. 173 – 174, 231 – 238, 242 – 243; RepAB, 1995, p. 161, no. 15). 36 discovered, published afterwards by Th. Momsen 17 . Epigraphic documents special by their singleness and by the abundance of the information contained, the 25 small waxed plates preserved and interpreted provide exact information about the economical realities, about the habitat system, about the religious life and about the legal relations that governed the mining community from this region. These documents mention as well a series of toponyms, designed to certain adjacent living structures. Thus, the following localities are mentioned in these documents: Alburnus Maior , in the civil accommodations of the XIII th legion Gemina from Apulum , vicus Deusara, Kartum, Immenosum Maius. The unanimous opinion accepted by the specialists, is that the small plates were covered, within certain mine galleries very difficult to be accessed, within a crisis moment, probably related to the Marcomanni attacks over Dacia during the period of 167-170 after Jesus Christ. After the discovery of the small waxed plates, at the middle of the XIX th century, the preoccupations for registering and publishing the antiquities from Roşia Montană area enter a new stage. It should be remembered in this context, Th. Mommsen’s trip in Transylvania in 1857, including to Roşia Montană. 18 . Extremely important for the reconstruction of the main references relative to the existing situation from Roşia Montană region, at the end of the XIX th century, the beginning of the XX th century, is the paperwork of the self-educated natural historian, epigraphist and archeologist Téglás Gábor, one of the creator of the archeological and history society in the committee of Hunedoara, as well as of the museum of Deva. He will publish a great number of articles related to the antiquities of the Transylvania region, referring as well to some known pieces at that time from Roşia Montană region, correcting and completing the information about these ones presented previously by M. J. Ackner, J. F. Neigebaur and C. Gooss. Another important moment in the history of the research of the ancient Alburnus Maior region is the elaboration, probably immediate after 1918/1919 of the manuscript of the so-called Anonymus Montanisticus , preserved nowadays at the State Archives, the branch of Cluj. According to V. Wollmann’s opinion, this manuscript written in German, with technical strong style, could have been elaborated by an engineer who worked in one of the golden mines from the region Brad-Crişcior or Roşia Montană. Most likely that it is about the same person who translated in German G. Téglás’s paperworks. In addition to a series of data extracted from Fr. Pošepný and G. Téglás’s works, the paperwork contains a series of new ground information related to the traces of ancient mine exploitations from the region of Roşia Montană 19 . Before the Second World War, the historian of the antiquity, Constantin Daicoviciu published a series of inscriptions from Alburnus Maior in a study named "Neue Mitteilungen aus Dazien "20 . Starting with 1975, the epigraphic discoveries from Roşia Montană were the object of the systematic publication in the Epigraphic Corpus of the Roman Dacia. The first volume (IDR I) of this monumental paperwork, elaborated by the epigraphist from Cluj, Ioan I. Russu put in value from scientific point of view the information contained by the small waxed plates, everything being included in a large study which accompanied these ones publication. In 1982, within the

17 CIL III: p. 934 – 935, TabCer V; p. 936 – 939, TabCer VI; p. 940 – 943, TabCer VII; p. 944 – 947, TabCer VIII; p. 950 – 951, TabCer XIII; p. 953, TabCer XV; p. 956, TabCer XX; p. 957, TabCer XXI; p. 958, TabCer XXIV; p. 959, TabCer XXV. 18 Under the coordination of Mommsen, in 1836 to Berlin, began the publication of a monumental paperwork, the collection of Latin inscription named Corpus Inscriptionum Latinarum from the entire Roman Empire, and the inscription from Dacia will be included in the third volume. 19 V. Wollmann, Mineritul ..(The mining).. , 1996, p. 20, no. 43 20 Dacia, 7-8, 1937-1940, p. 229-336 37 same series (IDR III/3) and with the concern of the same Ioan I. Russu, all the known epigraphs from Roşia Montană region and surroundings are published, until the moment of completing the edition. In The Archeological Repertoire of the Alba county (1995), all the information known up to that moment related to Roşia Monatană, the ancient Alburnus Maior are presented and synthesized. Volker Wollmann published in 1996, at Cluj, a paperwork dedicated to the history of the mining at Roşia Monatnă ( Metalliferous mining, the extraction of the salt and the rock pit in Roman Dacia / /Der Erzbergbau, die Salzgewinnung und die Steinbrüche im Römischen Dakien ). The information provided by the analyses of the epigraphic sources indicates an intensively-populated region to Alburnus Maior – during a period short enough from the II nd century after Jesus Christ, if we are to take into account the chronological data provided by the small waxed plates – with a variety of nationes , in which the Illyrian-Dalmatian element predominates. The image of an area intensively populated, with a progressive rhythmical development and with great demographic variations, seized by the unilateral analyses of the epigraphic sources, made V. Pârvan consider the gold-bearing region a “California of the antiquity”, giving to the site from Alburnus Maior an exceptional historical-literary characterization: “a Californian town of international civilization”. It is very difficult to distinguish, in the present stage of the researches, which will have been the status of the site from Alburnus Maior in the legal framework of the municipal life from Dacia. The information about the ancient centre of the gold exploitation has been completed, during the time, especially after the favorable conjuncture represented by the moment of discovering the small waxed plates, of about 75 epigraphic monuments 21 . During 1971-1972, as a result of some complex mining works, a part of the ancient mining network from Orlea region was put in value from tourism and scientific point of view. After the improvement program between 1973-1975, the Roman works became accessible to the public by the enclosure of the museum complex, organized by E. M. Roşia Montană, under the direction of the engineer Aurel Sântimbreanu. During 1981, with the help of some enthusiasts from the region and the contribution of a team from the museum of Alba Iulia, a new mining museum was organized, around which it was established the foundations of an outdoor exhibition, of a lapidarium with a patrimony containing over 50 Roman lyses monuments (votive altars, funeral stars, roofs of aedicule and sarcophagi, rock and wooden mining tools, pieces inventoried in the national cultural patrimony), everything situated within the space near the entrance in the Roman galleries under Orlea mountain. Unfortunately, the museum, in the form in which it was initially organized, was destroyed at the beginning of the ’90. Relative to the archeological research, we must mention the year 1983, moment in which, with the occasion of an archeological research with preserving character, made by V. Wollmann, in the North-East extremity of Hăbad mountain, in Brădoaia place, a sacred Roman area was discovered, with approximately 25 chalk votive altars, complete and fragmented, as well as a part of these ones’ imposts 22 . Until 2000, it could be asserted about Roşia Montană that it is a region with archeological

21 See Appendix G, Descoperiri arheologice întâmplătoare înainte de anul 2000 (Casual archeological discoveries before 2000), Studiu de condiţii iniţiale asupra patrimoniului cultural (Study of initial conditions on the cultural patrimony) , vol. 6, p. 164-167. 22 V. Wollmann, AIIAC, 27, 1985 – 1986; RepAB, 1995, p. 161, no. 24; V. Wollmann, Mineritul ..(The mining) , 1996, p. 195, 296, pl. XIV298, pl. LI. 38 potential, in which the proper archeological diggings, necessary for outlining in detail the different component elements of the site had not been made. Practically, in the region of the mountains Cetate, Cârnic, Jig and Orlea, situated in the upper part of Roşia valley and respectively of Corna valley, in the administrative radius of Roşia Montană commune, a series of casual archeological discoveries were known – epigraphic monuments, pieces of funeral architecture – which provided sufficient indications to presuppose the existence of certain archeological sites. This was the level of the knowledge before the effectuation of the large archeological researches brought about by the carrying out of The National Research Program Alburnus Maior. In the absence of any other indications on the ancient Alburnus Maior , the overall image about the site/sites was blocked in exclusively based on the information come on epigraphic way and that is why the significance of this region was relatively distorted. B. The National Research Program „ALBURNUS MAIOR” The archeological researches from Roşia Montană started in 2000 through the participation of the archeologists groups from The National Museum of the Unity Alba Iulia and from the Project Centre for the National Cultural Patrimony Bucharest (which has become since 2002 the National Institute of the Historical Monuments). Starting with 2001, the National Research Program „Alburnus Maior” was created by the Order of the Minister of Culture no. 2504 on 07.03.2001. The researches carried out in every archeological campaign are authorized by the Ministry of Culture and Cults (MCC) based on the annual archeological research plan approved by the National Commission of Archeology, carrying out based on the authorizations of preventive archeological diggings issued by MCC. The program was carried out according to the legal provisions with the financial support of S.C. Roşia Montană Gold Corporation S.A., which is of the company which intends to extend and to continue the surface exploitation of the gold-silver deposit from Roşia Montană. Thus, all the archeological researches with preventive character carried on at Roşia Montană starting with 2001 and until the present have been effectuated within the National Research Program „Alburnus Maior”. The archeological researches are coordinated scientifically by the National History Museum of Romania, at the carrying on of theses ones participating a number of 21 Romanian specialized institutions and 3 ones from abroad 23 . The researches consisted in the effectuation of: the archives studies, the ground researches, the air-photo interpretation, the mining archeology studies, underground topography and 3D modelling, the geophysical studies and other interdisciplinary studies (sedimentology, archeozoology, palinology, archeo-metallurgy, geology, mineralogy). The archeological research carried on by sounding all the accessible areas and in the same time favorable to the human living, taking into account the bibliographical information and observations made during the worldwide campaigns, the magnetometrical analyses, the studies of electrical resistivity and the

23 The National History Museum of Romania (Bucharest); The National Institute of Historical Monuments (Bucharest); The Archeology Institute “Vasile Pârvan” of The Romanian Academy (Bucharest); The National History Museum of Transylvania (Cluj-Napoca); The Institute of Archeology and Art History of the Romanian Academy (Cluj-Napoca); The National Museum of Unity (Alba Iulia); The Museum of Dacian and Roman Civilisation (Deva); The University Babeş-Bolyai, The Faculty of Biology and Geology (Cluj Napoca); The Institute of Cultural Memory (Bucharest); The Romanian Centre of Using the Tele-detection in Agriculture (Bucharest); The University “the 1st December 1918”- The Systematic Archeology Institute (Alba Iulia); The University of Bucharest, The Faculty of History (Bucharest); The County Museum of History “Iulian Antonescu” (Bacău); The Centre for Preparation, Permanent Education and Management in the Culture Domain (Bucharest); The Museum Complex (Suceava); The Oral History Centre “Gheorghe Brătianu” (Bucharest); The University “Le Mirail” (France); The Technical University from München (Germany); The National Centre of the Scientific Research (CNRS, France).

39 dates of the photogrametrical flights. Two flights for creating the air-photographic archives of the area have been effectuated (2000, 2004), a satellite image SPOT 5 (with resolution 2.5 m) of the Roşia Montană area have been purchased (2004) as well as orthophotoplans (with resolution 50 cm) of the Roşia Montană area (2006). An important realization is the elaboration of a digital map and of a GIS project which includes all the archeological researches and discoveries from this area – one of the first archeological GIS projects effectuated in Romania. Thus, large preventive archeological researches have been carried out and are in the process of being carried out in the impact area of the mining project Roşia Montană aiming to know the characteristics and the distribution of the elements of archeological patrimony. Depending on the results of the researches the procedure of discharching the archeological tasks of some perimeters situated in the intervention area of the investor has been applied or conservation decisions in situ of some representative structures and monuments have been taken, respectively for the continuation of the researches, in accordance with the legal provisions. The systematic development of the researches occurred where the archeological realities identified in the ground required it. There, where the specialists have considered that it is the case, it have been resorted to the conservation and the restoration in situ of the archeological objective, as in the case of the circular funeral monument from Hop-Găuri 24 or declared the respective area as archeological reservation like in the case of Carpeni hill 25 , respectively of the protected area Piatra Corbului. The preventive surface archeological researches effectuated until the present are the following: (2001) ample ground researches were effectuated in the areas with archeological potential identified in Roşia Montană area, in the sites situated on the Carpeni hill, on the Nan valley, in the areas Hop-Găuri, Hăbad and Tăul Ţapului, on the Cetate mountain, as well as a large research campaign on the Cornei valley; (2002) important archeological ground researches were effectuated in the areas with identified archeological potential from Roşia Montană, in the sites situated on the Carpeni hill, in the Găuri mire, in the area Hop-Găuri, Cârnic mountain, the area Gura Roşiei, the entire Corna valley, as well as Săliştei valley; (2003) archeological researches were effectuated in the areas with identified archeological potential from Roşia Montană area, in the sites situated on Carpeni hill, in the area Găuri mire, Jig-Văidoaia mountain, the area Ţarina and the area Gura Minei – Balmoşeşti; (2004) large archeological researches were effectuated in the areas with identified archeological potential from Roşia Montană area, in the sites situated in the area Jig – Piciorag, the area Ţarina – the continuation of the researches in the Roman incineration necropolis identified in the campaign 2003, the area Pârâul Porcului –Secuilor mire and the area Anghel mire; (2005) archeological researches were effectuated in the areas with identified archeological potential from Roşia Montană area, in the sites situated in the area Ţarina – the continuation of the Roman incineration necropolis identified in the campaign 2003 and the area Pârâul Porcului –Secuilor mire, the continuation of the Roman incineration necropolis identified in the campaign 2004; (2006) the archeological researches were continued in the area Pârâul Porcului –Secuilor mire, in the Roman incineration necropolis identified and researched in the previous campaigns. The results of these researches have been published every year since 2001 and until the present in the volume The Chronicle of Archeological Researches, in specialized magazines, as well as within the first three volumes from the monographic series Alburnus Maior. Within the

24 Alburnus Maior II , Bucharest 2004 25 classified in LMI 2004, code AB-I-m-A-00065.03 40

Report to the Impact Study on the Environment for Roşia Montană project, the main results of theses researches are – briefly - presented as well 26 . In the context of the planned mining exploitation in open pit, the proper measures have been taken for the effectuation of mining archeology researches. These specialized investigations are effectuated – starting with 1999 and up to the present – by a specialized, pluridisciplinary team, from the University of Toulouse Le Mirail (France), coordinated by dr. Beatrice Cauuet and they have had in view the effectuation of a detail study on this type of archeological vestiges, respectively the old mining galleries, the ancient age galleries and not only. The following areas have been investigated until now: Cetate mountain (2000-2002); Cârnic mountain (1999-2003), (2004 – 2006); Jig Văidoaia mountain (2003-2004); exploration in the view of archeological and improvement research for public access of the gallery Cătălina- Monuleşti (2002-2005); exploration and preliminary researches in the area of the mountains Ţarina and Orlea (2004 - 2006). During eight years of research at Roşia Montană , the topography have been made to over 70 km of underground mining works from all the ages, two thirds being situated in the mountains Cârnic and Cetate. Passing through the recent galleries, effectuated during the XX th century, the French team, in which Romanian archeologists and geologists from Deva, Cluj and Bucharest in the process of specialization in the mining archeology field have been integrated, could make the difference from the 70 km of underground mining works, 53 km of recent works (XIX-XX centuries), 10 km of modern works, “dug” with explosive (XVII-XVIII centuries) and almost 7 km of ancient mining works dug with iron tools (chisel and hammer) or with fire. The modern and recent works, identifiable as a result of studying their walls (traces of shooting through perforation, the general form of the works, the comparison with the archives mining plans, etc.), are dated without any other details starting with the XVII th century up to the beginning of the XX th century, by the radio-active carbon analyses effectuated on the wooden coal or on preserved wood. The 7 km of galleries dated in the Roman Age represent the amount of all the works of this kind identified and mapped, in all the mountains in which the research has been effectuated and not a unitary whole. Thus, according to the team’s conclusions that effectuated the research, the most part of the old works were reviewed and partially re-exploited by the miners who succeeded along the centuries. From this reason, the most part of the works dated within the Roman Age are partially deformed by the modern repetition effectuated with explosive starting with the XVII th century, period that marks the introduction of the shooting with the explosive in the European mines. As a result, in most part of it, the general plan of the ancient mining works can be reconstructed only taking into account the fragments of the ancient walls, which are preserved only in the roof or in the foot of the works. The modern miners have used at the maximum level the old mining works as storage area of their own useless rock, so that its present evacuation in the view of clearing for the research presupposes the effectuation of certain ample, rhythmical and expensive consolidation works and primary preservation works.

C. The Results of the National Research Program „Alburnus Maior” (2001-2006)

ARCHEOLOGY: The identification and the research of certain habitat areas of Roman Age including the public buildings situated on Carpeni hill and in the area Tăul Ţapului; The

26 see volume 6, Studiu de condiţii iniţiale asupra patrimoniului cultural (Study of initial conditions on the cultural patrimony), chapter. 5, p. 66-106, as well as evidence files of the archeological sites identified by these researches in the same documentation, Appendix I, p. 181-243. 41 localization of certain accommodations of Illyrian colonists situated in the areas Găuri-Hop and Hăbad; The identification and the research of many sacred areas situated in the areas Hăbad and Valea Nanului, where over 40 votive epigraphic altars have been discovered; The research of five Roman incineration necropolis and of two areas with funeral character in the sites Hop ( 255 graves ), Valea Nanului ( 4 graves ), Carpeni ( 8 graves ), Tăul Cornei ( 324 graves ), Jig-Piciorag (34 graves ), Ţarina (495 graves) and Pârâul Porcului – Tăul Secuilor (310 graves researched until the present), where over 1,200 graves have been discovered – one of the most ample groups of material and information (1,430 funeral complexes) on the funeral practices in Dacia province ; The discovery in the area Tău Găuri of the circular funeral monument from the II nd - III rd centuries after Jesus Christ; the monument is preserved in situ, being taken measures of primary conservation and permanent protection; The investigation of certain areas of the primary work of the gold mineral (Jig-Piciorag, Hăbad); Exhaustive researches of mining archeology in the mountains Cetate, Cârnic and Jig being mapped, identified and researched over 70 km of underground mining works datable in: Roman Age – approximately 7 km totalizing parts from the ancient exploitations, the late Medieval Age (the XVII th -XVIII th centuries) including over 10 km and works of Modern and Contemporary Age (the XIX th -XX th centuries) with a length of 53 km – these researches of mining archeology are a première for the archeology in Romania; The discovery of the Roman hydraulic system from the mining department Păru Carpeni and the preliminary researches of the mining archeology – an important discovery at the level of the Romanian archeology, this one being the first case in which such an ancient installation is discovered in situ in a relatively good conservation state and it is studied by a specialized team of miner archeologists. ETHNOGRAPHY AND HISTORY: The creation of oral history archives of the locality; The elaboration of an ample comparative ethnographic study for Roşia Montană area – Corna – Bucium; The elaboration of a comparative contemporary history study for the Roşia Montană area and Brad area THE MONOGRAPHICAL SERIES ALBURNUS MAIOR: Alburnus Maior I – The results of the preventive archeological researches during 2000-2001- published in 2003 ; Alburnus Maior II – The funeral monument from Tău Găuri – published in 2005 ; Alburnus Maior III – The Roman necropolis from Tăul Corna – published in 2006 ; Alburnus Maior, the series Anthropos – Ethnographic study Roşia Montană 2001 – published in 2004 .

3.4. Demographic and social references

A. Demographic evolutions at the scale of Alba County Since 1995 until 2003, the population of the county decreased by 5.1%, that is, it was registered an annual medium deficit of 0.56% (table 3.4.1.). As a protection, in the conditions of maintaining the present trends, it will result that in 2035, we shall have less with 17.92 habitants in comparison with 2003 that is approximately 316,430. If we analyze only the trends from the period 2000-2003, the annual decrease is of 0.76% that leads, as a demographic scenario for the year 2035, to a population with 24.32% less than in 2003 that is approximately 291,756 habitants. On both scenarios, the population of Alba County for the year 2035 can be estimated at approximately 300,000 habitants, which is the population of a big city from Romania in the present (the big cities of the year 2035 will have probably a population even more numerous). At the scale of the last century and of the present one, we can notice another demographic evolution of the population of Alba county: in continuous ascendance during 80 years, between 1912-1992 27 (from 330,750 to 413,919), the population of the county will decrease within 43 years (as a reality and as a prognosis) with much under the population of the year 1912.

Table 3.1.1. The population on age groups on 1st of July 2003 in Alba County - number of people – Age groups Year Total 0 - 14 15 - 59 years 60 years old years old old and more 1995 406,234 83,191 250,549 72,494 2000 395,941 71,661 248,909 75,371 2001 394,959 69,484 250,105 75,370 2002 385,880 66,235 244,253 75,392 2003 385,514 63,601 246,802 75,111 Source: The statistical year book of Romania, 2004 The decrease of the county’s population takes place, in the conditions in which the medium life duration (the synthetic index of the mortality) is during a stagnation process and in even slight amelioration within the last years (table 3.4.2.). It results that we will live longer and there will be less people on the same geographical area, so the population’s density of the county will decrease (per globally). Table 3.4.2. The medium life duration, on sexes in Alba County - years – Years Both sexes Male Female 1995-1997 69.41 65.89 73.37 1998-2000 70.88 67.35 74.76 1999-2001 71.55 68.50 74.83 2000-2002 71.29 68.05 74.78

27 The statistical year book of Romania, 2000, 43

2001-2003 71.39 67.92 75.14 Source: The Regional Statistics Department of Alba Regarding the fertility, a demographic phenomenon that influences mainly the populations’ evolution in the conditions of the third stage of the demographic transition 28 , the most relevant indicator is the total rate of fertility (THE SYNTHETIC CONJUNCTURE INDEX OF FERTILITY). Table 3.4.3. The fertility rates * , on age groups, during 2003 in Alba county General rate of fertility 35.2

Age group 15-19 29.2 20-24 78.1 25-29 78.3 30-34 38.8 35-39 11.7 40-44 2.9 45-49 0.1 *Born alive at 1000 women Source: The Regional Statistics Department of Alba

Using the specific fertility rates, on age categories (see the table above) the total fertility rate is calculated 29 (the synthetic conjuncture index, for the present):

49 49 N x RTF = ∑ f x = ∑ F x=15 x=15 Px It results that TFR = 5* (29.2+78.1+78.3+38.8+11.7+2.9+0.1)/1000 = 5*239.1= 1.195 children/woman , a value that is below the average at the national level calculated by INS 30 of 1.3 children/woman. In Alba county, the synthetic fertility index is slightly below the average at national level, what means that the process of demographic ageing may be more stressed at the county level than the country level (of course in the conditions of certain values close to the mortality and migration index). Consequently, if a generation takes the fertility on age categories of the year 2003, in Alba County, then we shall have at the end of the fertile age, on average, with every 1000 women, 583 girls born. In these conditions, over 35 years old (in 2042), the annual number of births will be with 41.7% less than in the present (1,448 births every year/county). Based on the data above, the general demographic projection for Alba county points out, for the year 2035, a dramatic decrease of the population (with 18-24% less than in 2003) and practically a reduction to one half of the number of births (a decrease between 40-42%). The causes of these evolutions are, in demographic plan, the fertility much below the replace rate of the generations, a negative external migratory balance, a negative internal migratory balance and a high intensity of the general mortality rate (in the conditions of a structure on old ages).

28 Vladimir, Trebici, Populaţia Terrei (The population of Terra) , Editura Politică,Bucharest, 1991 29 It is an index from transversal demographic perspective, for the present, what means that its values are calculated on an imaginary generation, but which can reproduce very well the evolutions of the real generations. 30 National Institute of Statistics, 2003 44

Note : The socio-economical evolutions can bring certain corrections to the demographic scenarios, and, although the trend will be maintained, its amplitude could be reduced or on the contrary, could be increased. The fertility, the main cause of these evolutions, cannot be influenced substantially though, only by economical evolutions at general level (the increase of GDP, the increase of the medium revenues, etc.). Major investments in regional plan are necessary which determine the population of fertile age to have a different demographic behavior. For example, the population from the rural environment can have a higher fertility by stopping the depopulation, of the migration to the cities by INVESTMENTS WITH SUBSTANTIAL CHARACTER. The pressing demographic evolutions (in a relatively short temporal horizon) impose urgent investment solutions.

B. Demographic evolutions in the immediate impact area The immediate impact area includes two towns of small size (below 10,000 habitants) and 6 communes among which 3 of big and medium size, with over 3,500 habitants, (Bistra, Lupşa and Roşia Montană) and 3 of relatively small sizes, below 2,000 habitants (Ciuruleasa, Bucium and Mogoş). The population of the impact area represents approximately 8.1% from the population of the county, with a higher percentage from the rural area of the county (10.44%).

Table 3.4.4.. The population of the immediate impact area referred to the population of Alba County, the 1 st of July 2005 Alba county Impact area Specifications Total Urban Rural Total Urban Rural Population (number) 381,650 221,418 160,232 30,919 14,185 16,734 Population (%) 100 45.9 54.0 100 57.9 42.1 % from the population of the county 8.1 6.4 10.44 Source: Regional Direction of Statistics Alba From 2001 until 2005, the population from the area had a strong decrease (of – 1.425%), almost 3 times higher than the one at the county level! In the assumption of maintaining the present situation, the population can decrease until 2035 with 41.7%. Table 3.4.5.. The population’s evolution in the immediate impact area (2001-2005) Specifications Impact area Total Urban Rural No. of population in 2001 32,762 15,117 17,645 No. of population in 2003 31,626 14,343 17,283 No. of population in 2005 30,919 14,185 16,734 Increase rhythm of population (%) 2005 in comparison with 2001 -5.7 -6.17 -5.17 Annual increase -1.425 -1.54 -1.292 2035 in comparison with 2005-prognosis -41.7 -46.2 -37.7 Population in 2035 (prognosis) 11,188 7,632 10,426 Source: The Regional Statistics Department of Alba

The demographic scenarios are supported as well by the comparative analyses of the age structure of the impact area with the one from the county level. The pyramid of the ages (see figures 3.4.1. and 3.4.2.) shows us for the impact area a population with a half basis, with many 45 problematic crews (generations) from the point of view of their percentage in the total population: the generations between 20-24 years old from the urban environment and the generations between 60-74 years old from the rural environment. The first generation has a percentage reduced a lot in comparison with the average, and the old generation from the rural environment is with a percentage much above the one at the county level. On the other hand, it must be pointed out that the two structures of the impact area, the one from the rural environment and the one from the urban environment are in the process of demographic ageing, with reduced conditions of fertility and with gross high mortality rates.

populatia judet zona de impact 85 si peste 85 si peste

80--84 80--84

75--79 75--79

70--74 70--74

65--69 65--69

60-64 60-64

55--59 55--59

50--54 50--54

45--49 45--49

40--44 40--44

35--39 35--39

30--34 30--34

25--29 25--29

20--24 20--24

15--19 15--19

10--14 10--14

5--9 5--9

0--4 0--4 12,00% 10,00% 8,00% 6,00% 4,00% 2,00% 0,00% 0,00% 2,00% 4,00% 6,00% 8,00% 10,00% 12,00%

Figure 3.4.1. -. The pyramid of ages on the urban environment (in comparison with between the immediate impact area and the urban population on Alba County) 30

30 The census of the population and houses, 2002 46

populatia judet zona de impact 85 si peste 85 si peste

80--84 80--84

75--79 75--79

70--74 70--74

65--69 65--69

60-64 60-64

55--59 55--59

50--54 50--54

45--49 45--49

40--44 40--44

35--39 35--39

30--34 30--34

25--29 25--29

20--24 20--24

15--19 15--19

10--14 10--14

5--9 5--9

0--4 0--4 12,00% 10,00% 8,00% 6,00% 4,00% 2,00% 0,00% 0,00% 2,00% 4,00% 6,00% 8,00% 10,00% 12,00%

Figure 3.4.2. -. The pyramid of ages on the rural environment (in comparison with between the immediate impact area and the rural population on Alba County) 31

The analyses of the demographic phenomena of the natural movement of the population from the point of view of the gross rates shows us a marked area of critical birth rate (much below the replace rate of the population and below the county environments) with a negative natural efficiency, inferior to the county one. As a positive fact, we can note a number of divorces referenced to a thousand habitants, much below the average on the country and on the county. On the other hand, the density of marriages is more reduced on both environments from the impact area (rural and urban). The infant mortality rate (the deaths among the children younger than 1 year old) is as well more reduced than the value at the county level (see table 3.4.6. for all these evolutions).

Table 3.4.6. The population’s natural movement in the immediate impact area and Alba, the 1 st of July 2005 Specifications Alba county Impact area Total Urban Rural Total Urban Rural Complete data (number) Born-alive 3,778 2,174 1,604 247 104 143 Deaths 4,826 2,249 2,577 345 129 216 Natural efficiency -1,048 -168 -980 -98 -25 -73 Marriages 2,296 1,536 760 145 82 63 Divorces 563 410 153 36 20 16 Deaths under 1 year age 69 32 37 4 2 2 Gross rates (to 1,000 habitants)

31 The census of the population and houses, 2002 47

Born-alive 9.9 9.8 10.0 7.97 7.3 8.5 Deaths 12.6 10.1 16.0 11.1 9.0 12.9 Natural efficiency -2.7 -0.75 -6.1 -3.1 -1.7 -4.3 Marriages 6.0 6.9 4.7 4.6 5.7 3.7 Divorces 1.47 1.85 0.95 1.16 1.4 0.95 Deaths under 1 year age to 1,000 born-alive 18.2 14.7 23.0 16.2 19.2 13.9 Source: The Regional Statistics Department of Alba

The population of the immediate impact area is characterized by a high mobility in territorial plan (between the localities from the county and from the country), with indexes above the ones of the county. The internal migration balance is one much higher than the average, which can lead to a depopulation of the area as a whole. On the other hand, the external migration is a very rare socio-demographic event. It is possible that the route of the external migration should be though, one in two steps: in the first stage, the migration to another county occurs, and then the people leave the country.

Table 3.4.7. The population’s migratory movement from the immediate impact area and Alba County, the 1 st of July 2005 Specifications Alba county Impact area Total Urban Rural Total Urban Rural Complete date (number) Departures from the 3,860 2,097 1,763 400 186 214 locality (internal) Arrivals in the locality 3,640 1,949 1,691 223 121 103 (internal) The internal migration -220 -148 -72 -176 -65 -111 balance Gross rates (for 1,000 habitants) Departures from the 10.1 9.47 11 12.9 13 12.7 locality (internal) Arrival in the locality 9.5 8.8 10.55 7.1 8.5 6.1 (internal) Internal migration -0.5 -0.6 -0.4 -5.6 -4.5 -6.6 Source: The Regional Statistics Department of Alba

On the other hand, the external migration 32 is a very rare socio-demographical event in this area. But it is however possible that the external migration itinerary is one made in two steps: in the first phase there is the migration into another county, and then follows the next stage of leaving the country altogether. It is certain, though, that from the point of view of the

32 External migration, from a demographic angle, is not the same as the temporary migration in search for a job, which is actually conceptually treated as ‘temporary dwelling abroad’. Estimations at a regional level of this type of migration which might have a concrete and firm character, are missing. Instead, there are studies, investigations at a national level (the most recent report is The Temporary Dwelling Abroad. The Economic Migration of the Romanian People: 1990-2006 , coordinating expert Dumitru Sandu). The character of this type of migration, oftentimes illegal, presupposes a representative inquiry, as being the most certain means of estimation of its level. 48 definitive character of the act of leaving the country the conservative character of the impact area is to be marked down.

Table 3.4.8. The population’s external migratory movement from the immediate impact area and Alba County, the 1 st of July 2005 Specifications Alba County Impact area TotalUrbanRuralTotalUrbanRural Complete date (number) Immigrations 1 0 1 0 0 0 Emigrations 146 123 23 5 4 1 The external -145 -123 -22 -5 -4 -1 migration balance Gross rates (for 1,000 habitants) Immigrations 0 0 0 0 0 0 Emigrations 0.3 0,55 0,14 0,1 0,28 0,05 External migration -0,3 -0,55 -0,14 -0,1 -0,4 -0,1 (total) Source: Regional Department of Statistics Alba

C. Living ration of the immediate impact area Bistra has the largest number of villages (34), but in the year 2002, in 5 of these, there were less than 20 dwellers. In Bucium, another township with a large number of villages, two of the villages had less than 5 inhabitants. As a matter of fact, the small number of dwellers of the villages from the Apusenilor Albei is one of the distinctive characteristics of the localities in the area, owed to the spreading out of the households not just along the water courses, but also on the peaks which, once offered natural resources for the development of the household (pastures and wood). Table3.4.9. Indicators of living in the immediate impact area

INDICATOR ABRUD ABRUD CÂMPENI BISTRA BUCIUM CIURULEASA LUPŞA MOGOŞ ROŞIA MONTANĂ TOTAL Population (the1st of Jan. 2006)* 5,980 8,178 5,199 1,739 1,312 3,820 1,022 3,557 30,807 Number of houses/households (2005)** 2,542 2,921 1,576 925 483 1324 567 1,576 11,914 Medium surface house/person (m 2)** 15.18 13.52 11.68 18.11 12.18 13.63 14.12 15.18 - Population (2002)*** 6,195 8,080 5,066 1,792 1,368 3,867 1,114 3,872 31,354 Number of localities /villages (2002)*** 4 21 34 29 9 23 21 16 157 Number of houses / households (2002)*** 2,430 2,855 1,486 716 415 1,300 450 1,355 11,007 Sources: * The County Statistics Department of Alba,** The Social Guide of Alba county (2005), ***The County Commission for Antipoverty and Promotion of the Social Inclusion ALBA,

As far as living conditions are concerned, according to the average surface habitable by a person, the data shows that the values of this indicator are higher in Mogoş and Roşia Montană. As a term of comparison, in the rural area of Alba County, the maximum value of this indicator is registered in Rimetea, Livezile township (22,92 mp), a village marked by depopulation and demographical ageing, but whose locative fund is exploited by means of agro-tourism.

D. Occupancy and unemployment The occupation degree of the population from the area is in general one below the average on the county, and on the rural environment, respectively the urban one. Within the area, there are differences between the localities, both from the point of view of the occupation rate, and of the activity rate. The commune with the highest occupation degree, above the average on the county, is Mogoş, and the most reduced degree is in Roşia Montană. A high percentage of retired population is in the villages (Bucium has the most retired population to 100 active people), the two towns (Câmpeni and Abrud) being close to the situation at county level. Table 3.4.10. The occupation degree 36 of the population in the immediate impact area . Impact area occupation retired Localities activity 33 rate rate people rate Abrud 42.2 36.9 18.8 Câmpeni 44.3 38.8 18.5 Bistra 44.5 36.2 17.8 Bucium 43.3 34.7 31.4 Ciuruleasa 44 39.1 23.2 Lupşa 47.6 44.3 23.4 Mogoş 52.4 50.2 27.3 Roşia Montană 39.2 30.9 26.1 Source: The census of the population and of the houses, 2002

The massive restructuring that has taken place in the mining industry, as far as occupancy is concerned, has affected even the localities in the impact area of the RMGC project. In the mountainous areas with mining activities, salaries represent the main source of income in the households. Lacking alternatives that can ensure them with comparable income, the active people of the household opt for migration towards economically more prosperous areas. In the countries of the European Union they are more likely to get a job as unqualified workers, the mining industry in Romania offering less and less jobs. Consequently, as far as occupational mobility is concerned, the chances for the active people from the impact areas to get a job either at the same level of training or one that offers the possibility for the exploitation of the abilities developed through work experience, is close to null. According to official statistics, in the immediate impact area, industry used to ensure the gross of jobs for labor force in Abrud, Lupşa, Bucium and Roşia Montană, administrative-

36 All the rates are calculated in percentages, as follows: a) mass of active population from the total of working age population, b) mass of occupied population from the total of working population, respectively c) mass of retired population from the total of the population. 33 All the rates are calculated in percentages 8 Because of the autonomy of the demographic phenomena, certain weak points can be transformed in strong points and the other way around 50 territorial units that seem to be directly and strongly dependent on the continuation of the mining activity in the area. From among the towns, Abrud is highly affected by the cease of the mining activity, taking into consideration that, for instance, in the year 2002, from the total of the population working in the industry (1619 people), 85% were working in the extractive industry (288 people) 34 .

Work in one’s own household represents in the rural area one of the options for income. In this respect, table 3.4.11 highlights the difference between the rural and the urban of the impact area, but also the difference between the rural localities comprised in the analysis. In the town of Abrud, the mass of those who used to ensure their income from work in their own household is six times lower than in the town of Câmpeni, because of the jobs in the mining industry, placed favorably for the dwellers of Abrud. The spatial proximity of enterprises that ensure jobs (which reduces the costs and efforts of communting) is the most favorable factor for occupancy, a fact shown also by the reduced rate of occupancy in people’s own household in Roşia Montană (where the rate of occupancy in the household is close to the one in Abrud and lower than the one in the town of Câmpeni). This is because of the higher mass of people working in the mining industry. Rates close to the ones in the urban area had been registered in Lupşa, a township within which the mining complex CupruMin can be found. Consequently, the most powerful negative effects as a result of the cease of the activity of the two mining enterprises will be felt in the town of Abrud, but also in the townships of Roşia Montană and Lupşa.

Table 3.4.11.

Distribution of labor force occupancy on activity sectors (2002) LOCALITIES SECTOR RATE OF OCCUPANCY IN OWN HOUSEHOLD (%) State Private Mixed Own Total household

Abrud 1317 896 47 32 2292 1,40 Câmpeni 1180 1636 65 260 3141 8,28 Bistra 624 753 21 436 1834 23,77 Bucium 288 199 1 135 623 21,67 Ciuruleasa 163 199 0 174 536 32,46 Lupşa 569 886 16 242 1713 14,13 Mogoş 72 193 0 295 560 52,68 Roşia 774 305 68 53 1200 4,42 Montană Total 4987 5067 218 1627 11899 - Source: National Institute of Statistics

From the statistic data provided by the Agency of Mining Areas Alba it is obvious that there is a sinuous but uninterrupted evolution of dismissals in the area (table 3.4.12), that have taken place as a result of the decline of economic activities of the mining enterprises belonging to MINVEST Deva (mining exploitations and preparation factories from Roşia Poieni, Roşia Montană, Baia de Arieş and Zlatna). The employees of these enterprises, predominantly

34 National Institute of Statistics 51 dwellers of the localities in the impact areas, are affected by the mass dismissals. Called collective dismissals by the Romanian legislation, the acts per se result, according to the laws in force 35 , in certain rights: (a) a sum equal to the double of the average net salary; (b) unemployment compensation; (c) a monthly completion income equal to the difference between the net individual salary for the last three months (but not higher than the average net salary) and the level of the unemployment compensation, granted for a variable period, according to seniority in the field of labor (between 20 and 24 months). After the period for the granting of the compensation has expired, under the conditions of a poor local job offer, along with the activity in the own household (generally, of sustenance), a great number of these people resort to the informal activities 36 . According to administrative units, the largest number of dismissals is registered in the town of Abrud, followed by Roşia Montană, Lupşa and Bistra. In the period between 2004 and 2007, the maximum number of dismissals was registered in Roşia Montană, because of the closing up of the mining unit with its headquarters in the locality, RoşiaMin, at the end of 2006. The peak year of dismissals, from the considered period, is 2006, when the activity of CupruMin and RoşiaMin is also reduced to the minimum – enterprises which ensure the greatest number of jobs in mining for the people in the area. At the beginning of 2007 a new wave of dismissals takes place (as it can be seen from table 3.4.13 and the adjacent diagram), which for the dwellers of Roşia Montana represents losing a greater number of working places than in the period between 1997 and 2003.

Table 3.4.13. Distribution of dismissed persons on administrative units from the immediate impact area Locality /year 1997-2003 2004 2005 2006 2007 TOTAL Abrud 339 22 17 221 147 746 Câmpeni 113 16 5 59 70 263 Bistra 76 64 13 131 31 315 Bucium 106 9 7 19 29 170 Ciuruleasa 52 4 4 28 27 115 Lupşa 190 109 10 137 6 452 Mogoş 39 1 11 11 2 64 Roşia Montană 232 16 86 86 253 673 Total 1147 241 153 692 565 2798 Source: The Agency of Mining Areas Alba

In the context of massive dismissals, the number of unemployed people registered with the County Agency of Labor Occupancy Alba is naturally rising. Unemployment has become one of the major social issues in Romania starting with the year 1993 when the unemployment rate jumped up from 5,43% (in the year 1992) to 9,20% (according to ANOFM data). The rising trend of the unemployment rate at national level in the period between 1993 and 2002 (with a

35 See the Emergency Decree no. 8/2003 concerning stimulation of the restructuring, reorganization and privatization process of some national companies and companies with state capital majority, as well as trading companies and autonomous regimes subordinated to the local public administration authorities; Emergency Decree of the Government no. 34/2004; Law No. 507/2004. 36 From the Anti-Poverty and Promotion of the Social Inclusion National Plan (2004) it results that the informal economy (officially not registered) creates new problems to the individual that practices it because it lacks any kind of social protection measures. 52 maximum of 11,36% in the year 1999) was one of the major issues the economic and social politics of Romania tried to solve, seeking to take (active) measures for the increase of the degree of the labor force occupancy. Starting with 2003, the unemployment rate at national level starts to decrease, so that by 2007 it only registers 5%. Consequently, the numbers show an improvement in this respect. Lacking data validated by INS that might reflect the particular values registered by the unemployment rate in the last years of impact, we consider relevant the numbers that show the evolution of the number of unemployed persons (table 3.4.14) 37 and of the fluctuations in percentage points, taking as reference the year 2003 (table 3.4.15) 38 .

Tabelul 3.4.14. Evolution of the number of unemployed persons in the immediate impact area (2003-2007) Locality /year Dec. Dec. Dec. Dec. Febr. 2003 2004 2005 2006 2007 Abrud 320 188 231 295 479 Câmpeni 484 464 254 333 380 Bistra 211 231 174 145 241 Bucium 96 89 70 68 139 Ciuruleasa 70 123 25 52 79 Lupşa 149 176 385 222 351 Mogoş 38 101 27 23 18 Roşia Montană 230 176 158 351 391 Total 1598 1548 1324 1489 2078 Source: AJOFM Alba

Evolution of the number of unemployed persons (2003-2007)

600 500 ABRUD 400 BISTRA 300 BUCIUM

persons persons 200 CAMPENI 100 CIURULEASA 0 LUPSA number of unemployed unemployed of number MOGOS oct.04 oct.05 oct.06 iun.04 iun.05 iun.06 feb.04 feb.05 feb.06 feb.07 apr.04 apr.05 apr.06 dec.03 dec.04 dec.05 dec.06 aug.04 aug.05 aug.06 ROSIA MONTANA reference date

From table 3.14 one can notice the leap concerning the number of unemployed persons registered at AJOFM Alba in February 2007 in comparison to December 2006, in close connection to the dismissals that took place at the end of the year 2006 as a result of the cease of activity of the two mining exploitations CupruMin and RoşiaMin. All the localities from the impact area of the project are affected by this phenomenon, except Mogoş, where the number of unemployed persons is decreasing.

37 http://www.anofm.ro/statistici/evolutia_ratei_somajului_1991_2006.html 38 AJOFM Alba 53

Table 3.4.15. Rate of increase of the number of unemployed persons in the immediate impact area in comparison to the year of reference 2003 (%) Dec.2004 Dec.2005 Dec.2006 Febr.2007 ABRUD 35,87 -38,53 -8,47 33,19 CAMPENI 20,00 -90,55 -45,35 -27,37 BISTRA -12,83 -21,26 -45,52 12,45 -84,62 -37,14 -41,18 30,94 BUCIUM CIURULEASA 24,73 -180,00 -34,62 11,39 LUPSA -22,13 61,30 32,88 57,55 MOGOS 0,00 -40,74 -65,22 -111,11 ROSIA MONTANA -25,68 -489,74 34,47 41,18

In comparison to 2003, when in Romania the rate of unemployment was already significantly decreasing in comparison to the previous year and when the descending trend of the rate of unemployment at national level is starting, from 10,2% to 7,6%, in the impact area evolutions differentiated on localities and in time of the rate of number of unemployed persons to the year 2003 (table 3.4.15), which show: (1) increase in the year 2004 in comparison to 2003 in the two towns and in the township of Ciuruleasa; (2) In 2005, the only locality where an increase of the number of unemployed persons in comparison to the year of reference, was registered in Lupşa, but with a significant rate of reference of over 50%; (3) In 2006, a positive rate of growth of the number of unemployed persons is maintained, even if the level is slightly lower, whereas for the township of Roşia Montană it is the year in which the rate of growth of the number of unemployed persons is positive; (4) In the year 2007, in the month of February, with the exception of the township of Mogoş, all the other administrative-territorial units registered a significant increase of the number of unemployed people, as a result of the massive dismissals made by the mining exploitations in the area. The town of Câmpeni still has less unemployed persons in 2007 than in the year 2003, because of the more reduced dependency for jobs within in the mining industry.

TABLE 3.4.16. The mass of unemployed persons registered within the stable population of ages 18-62 years in the immediate impact area, period 2003 - 2007 Specifications Dec. Dec. Dec. Dec. Febr. 2003 2004 2005 2006 2007 ACOUNTY AVERAGE 7,01 7,78 6,42 5,40 5,67 Urban average county 7,60 7,17 5,71 4,02 4,09 Abrud 7,55 4,79 5,90 7,46 12,11 Campeni 9,22 8,8 4,91 6,35 7,24 Rural average county 6,02 8,77 7,57 7,67 8,25 Bistra 6,92 7,38 5,60 4,61 7,66 Bucium 8,27 8,6 6,90 6,71 13,72 Ciuruleasa 9,22 16,29 3,32 6,96 10,58 Lupsa 6,93 7,63 16,99 9,90 15,65 Mogos 6,53 18,36 10,47 4,48 3,51

Rosia Montana 9,14 7,79 5,89 16,09 17,88 Source: AJOFM Alba

According to another relative indicator, that of the mass of unemployed persons registered within the stable population of ages 18-62 , based on the statistic data available at locality level, provided by AJOFM Alba, some other aspects become obvious (table 3.4.16): (1) while at county level the value of the indicator has a clearly descendant tendency, in the town of Abrud there is an ascendant evolution, with a leap in the interval between December 2006 – February 2007, which shows values three times higher than the urban average on county level, while in the town of Câmpeni, the values are almost double; (2) for the rural of the impact area, in 2003 all the townships exceeded the county average, with a maximum in Ciuruleasa while in February 2007, an important exceeding was registered in Roşia Montană, Lupşa, Bucium and Ciuruleasa.

Conclusions:

1. Concerning the demographic references of the immediate impact area the following evolutions might be highlighted : - The total fertility rates lower at the level of the impact area than the comparable indices (national, county, urban or rural level), which highlights, on the one hand, the pressing character of some of the politics of maintenance of the fertile population (15- 49 years) in the area, and on the other hand the necessity for strategical and political interventions (and investments) which might be able to modify the actual pro-creative behavior of the couples. - Very low divorce rate , which next to a low external migration rate shows the conservative and traditional character of the population (from the socio-demographic angle comparative to Alba County) - Reduced number of marriages , also a consequence of an aged demographical structure (more aged than that of the comparable structures, as shown in the figures 3.4.6. and 3.4.7.) - An internal mobility of the population (from one locality to the other) a lot above the country and county average, which might favor innovative behavior... but also depopulation

2. As far as living, occupancy and unemployment, we note that : - There have been massive dismissals, which affect, even though not immediately, the budgets of the families that had workers in the mining enterprises; - After the number of the dismissed people, the most affected administrative-territorial units from among the towns is Abrud, and from the townships Roşia Montană and Lupşa; - The growth rates of the number of unemployed persons at the beginning of the year 2007 in comparison to 2003 are are higher in Roşia Montană, Lupşa, Bucium and Abrud and are directly linked to the last wave of dismissals; - In the impact area there is a work source and the number of people in search for a job is higher than the county average from the total of the working age population; - In the interval 2003 –2007, while the national level of unemployment is decreasing, in the impact area it is increasing;

- Professional reconversion offers reduced perspective of economic rehabilitation of the households, because no job opportunities as great in number as the dismissed people has showed itself yet; - There is a persistent tradition of waged work, there fore under this aspect, unemployment represents a serious problem in the area.

3.5. Economic potential of the immediate impact area

A. The agricultural potential Agriculture represents one of the preponderant economic activities performed in the localities of the impact area, mainly in the communes. The inhabitants of the same were permanently subject to considerable constraints of economic and social nature. The lack of services and basic facilities, besides the difficult economic situation of the enterprises in the area, correlated with the lack of employment opportunities, determined many families to return to a life style based on living agriculture. Consequently, a living agriculture is practiced where the self consumption has an excessive ratio. The agricultural potential of the impact area, in the present form of organization of the agricultural exploitations does not permit the development of market-orinted agricultural activities. In the impact area there are no commercial agricultural exploitations as defined by the Emergency Decree no.108 from June 27, 2001. According to the above-mentioned legislative act for the vegetal sector, such a mountainous region must have at least 25 ha of naturally grown meadows and green crops. For the animal sector, a commercial agricultural exploitation must have at least: a) 15 milking cows; b) 50 taurines to be fattened; c) 300 sheep or goats; d) 100 pigs; e) 100 other species f animals; f) 2000 egg-laying hen; g) 5000 meat birds; h) 1000 other species of birds; i) 50 families bee apiculture. Agricultural exploitations with dimensions under the limitations mentioned are considered familial agricultural exploitations. These can be stimulated according to the above- mentioned legislative act for practicing of ecological agriculture. The agricultural surface in the localities within the immediate impact area of the RMGC project is presented in table no. 3.5.1.

Table 3.5.1 The agricultural surface on categories of use in the localities within the immediate impact area (ha) Surface in ha Locality Roşia Montană Abrud Câmpeni Bistra Ciuru- Lupşa Mogoş Bucium leasa Total agricultural surface 2315 1891 4351 3573 2575 1233 5840 4327 Arable surface 280 208 621 785 252 202 539 256 Pastures 1098 929 1940 1939 1371 327 2932 2896 Meadows 937 754 1790 849 952 704 2369 1175

% arable surface 12 11 14 22 10 16 8 6 Source: Department for Agriculture and Rural Development Alba

We observe that the arable surface occupies a low area from the total of the agricultural surface, which offers the first information on the agricultural potential of the area, which is appropriate only for animal husbandry being able to exploit the natural pastures and meadows. Reported to the number of households from the localities in the impact area, which can be assimilated to the individual agricultural exploitations, each of them owning a certain surface of terrain, the structure of the agricultural surface divided up in usage categories owned averagely by a household is presented in table 3.5.2.

Table 3.5.2. Average agricultural surface of the households in the localities within the immediate impact area divided

up in usage categories (ha)

Surface in ha Locality

Roşia Montană Abrud Câmpeni Bistra Ciuru- Lupşa Mogoş Bucium leasa Total agricultural surface 2,10 1,44 3,59 2,39 3,29 2,46 4,49 6,66 Arable surface 0,25 0,16 0,51 0,53 0,32 0,40 0,41 0,39 Pastures 1,00 0,71 1,60 1,30 1,75 0,65 2,26 4,46 Meadows 0,85 0,58 1,48 0,57 1,22 1,40 1,82 1,81 No households 1100 1306 1212 1490 783 502 1300 650 Source: Calculated data

We observe the reduced dimension of terrain surfaces belonging to one household, which does not permit practicing agriculture except at a sustenance level, considering also the specific of the area. Of course there are variations as far as the dimension of the terrain owned by each household. For the township of Ciuruleasa, for which we have the data 39 , the highest percentage is that of the households that own between 1 and 2 ha of agricultural terrain (30%), followed by owners of less than 1 ha (26 %) households owning 2 to 3 ha (19 %), and those that own between 3 and 5 ha, representing 14 %. The households that own surfaces of between 5 and 10 ha represent approx. 10 % of the number of agricultural households, while those that own more than 10 ha of terrain represent only 1%, in number of 6. The households with large surfaces of terrain are generally on the hills, in limitary villages. The situation of the township Ciuruleasa regarding the surfaces owned by one household can be extrapolated to the localities within the impact area, being a characteristic of the mountainous region.

39 Development strategy of the township of Ciuruleasa. 57

The vegetal agricultural production of the localities within the impact area is synthetically represented in table no.3.5.3.

Table no.3.5.3 .

The dynamic of the cultivated agricultural surface and of the vegetal agricultural production LOCALIT YEA WHEAT OAT CORN POTATOES VEGETAB Y R LES -ha- -to- ha- - to- -ha- -to- -ha- - to- ha- - to- Abrud 2004 - - 6 5 4 5 130 1560 20 72 2005 3 3 5 5 - - 90 1080 20 71 2006 3 3 5 5 - - 90 990 20 59 Câmpeni 2004 50 100 100 200 20 40 220 3520 20 300 2005 80 128 80 96 20 40 300 4200 20 245 2006 100 180 100 120 20 40 250 3500 30 340 Bistra 2004 100 150 200 300 30 54 300 4200 20 151 2005 130 182 150 210 30 45 300 3600 25 180 2006 80 72 150 135 30 75 250 2750 25 89 Roşia 2004 - - - - 5 7 185 2220 20 77 Montană 2005 2 2 3 3 - - 135 1620 20 81 2006 2 2 3 3 - - 135 1485 20 67 Bucium 2004 - - - - 10 10 208 2912 16 102 2005 - - - - 10 10 200 2800 16 104 2006 - - 10 8 16 10 201 2412 16 180 Ciuruleasa 2004 ------80 960 5 19 2005 ------60 660 5 14 2006 ------60 660 5 14 Lupşa 2004 20 50 - - 180 720 180 2880 4 55 2005 10 20 20 38 - - 299 3588 5 58 2006 - - 30 27 120 300 260 2860 9 30 Mogoş 2004 - - 20 16 3 15 100 1250 23 437 2005 - - 20 16 - - 80 640 25 350 2006 - - 20 16 - - 85 850 25 338

Source: Department for Agriculture and Rural Development Alba

We observe that the analyzed area is not favorable to the vegetal crops. The cereal production is modest, meaning that animal husbandry that exploits the use of cereals cannot be based either on the production in the area, because the practicing of an integrated agriculture is not possible from this perspective. The registered capacities do not accentuate a profitable agriculture, rather an inefficient one. Growing potatoes might however be considered for this region. Animal husbandry remains the main source of income in the area. The number of animals raised within the immediate impact area of the RMGC project in the last three years is presented in table 3.5.4. Table 3.5.4.

The dynamic of the number of animals YEA CATTLE SHEEP+GOA PIGS POULTRY R T LOCALIT Total d.c Total d.c.wit Total d.c. Total d.c. Y cow h sow egg- young laying 2006 830 500 215 149 280 23 5500 4600 Abrud 2005 868 530 226 175 273 23 6100 5000 2004 890 550 230 185 304 30 6400 5000 2006 1900 900 346 277 600 40 1050 4000 Câmpeni 0 2005 1980 1000 452 391 660 40 1170 4000 0 2004 1980 900 330 260 650 40 1100 4000 0 2006 1950 880 771 622 119 25 6900 5000 Bistra 8 2005 1983 1100 775 650 180 25 7000 5000 0 2004 2350 1100 895 650 180 25 7000 5000 0 2006 986 530 208 143 170 14 6000 5000 Roşia 2005 1002 560 225 167 190 14 6485 5000 Montană 2004 1070 600 249 192 254 16 6500 5000 2006 1250 540 200 180 130 10 3600 2000 Bucium 2005 1310 590 208 190 120 10 3700 2000 2004 1420 660 342 260 470 10 9000 3000 2006 890 460 181 144 190 24 3400 2500 Ciuruleas 2005 910 530 196 154 203 24 3400 2500 a 2004 945 580 196 164 390 24 3400 2500 2006 1940 910 338 280 647 20 8000 5400 Lupşa 2005 2300 1000 350 320 760 20 8200 5400 2004 2250 1000 350 320 750 20 8100 5400 2006 1450 700 110 630 215 10 3650 2600 Mogoş 0 2005 1520 800 120 800 200 10 3600 2800 0 2004 1525 875 130 750 195 10 6000 3000 0 Source: Department for Agriculture and Rural Development Alba Relative to the number of household in the impact area, the number of animals is modest. There is general one cow, 1-2 pigs and approx. 10 poultry in every household. This number is characteristic to sustenance agriculture and cannot be regarded as a source of income completion.

The agricultural production is obtained from the animals raised in households in the impact area of the project in table no 5.

Table 3.5. 5. The dynamic of production obtained from animals MEAT, TO MILK, HL WOOL YEA KG LOCALITY R Cattle Sheep + Pigs Poultry Cow Sheep + Ghoat Goat 2006 133 7,3 37,5 11,3 14200 82 525 Abrud 2005 145 3,9 60,6 11,3 14300 87 560 2004 106 6,2 85 18,3 14800 78 525 2006 167 51 170 38 30000 715 460 Câmpeni 2005 163 12 207 42 27500 175 455 2004 136 5,6 229 47 29000 80 460 2006 272 21 150 45 27000 274 530 Bistra 2005 313 24 228,6 15 32000 320 650 2004 248 20 222,5 21,6 30000 500 650 2006 122 7 121 24 18180 70 240 Bucium 2005 71 7 130 20 17500 85 230 2004 96 12,3 125 33 20000 120 350 2006 127 7,9 36 12 15100 79 525 Roşia 2005 158 6 61,3 13 15000 83 530 Montană 2004 145 5,5 50 14,3 22000 69 530 2006 110 7,2 42 11 13500 66 260 Ciuruleasa 2005 116 5,1 54 10 14250 64 275 2004 119 5,3 62 10,2 16200 74 263 2006 226 14 79 33,5 26000 126 590 Lupşa 2005 128 5 122 10 28000 150 626 2004 165 6 161 12 26000 150 560 2006 253 12 77 18 23650 355 324 Mogoş 2005 266 11 80 23,9 23600 385 340 2004 247 13 69 24 25460 405 362 Source: Department for Agriculture and Rural Development Alba

The obtained output is non-competitive. The average milk production of a cow is less than 3000 liters. A difficult issue is also the exploitation of the agriculture products obtained in the households. These are generally used within the household. Most of the times there is a certain surplus, but that cannot be put to value because there are no such units where these products could be sold and the transportation expenses to the collection centers are high. The rudimentary character of the practiced agriculture is also demonstrated by the fact the technical endowment, synthesized in table 3.5.6.

Table 3.5.6. Technical endowment of agriculture in the immediate impact area

MILKING LOCALITY TRACTORS MOTOCULTORS MOTOMOWER MACHINES Abrud 4 - 23 5 Câmpeni 8 - 10 10 Bistra 4 - 4 4 Roşia Montană 4 - 3 3 Bucium 2 - 5 5 Ciuruleasa 2 - 8 8 Lupşa 3 4 12 12 Mogoş 1 - 6 6 Source: Department for Agriculture and Rural Development Alba

The arable surface per tractor is in some areas of over 100 ha, which is impossible to achieve even f the terrain were in pone place and the tractor would exclusively be used for vegetal production. The milking machines are almost inexistent relatively to the number of cows. This situation demonstrates that in the agriculture of this area, production technologies are rudimentary, based on usage of animals in the works of the soil, and productivity of workers in agriculture is extremely low. The tractors are used especially in the exploitation of wood. The aspects mentioned above characterize the state of agriculture in the impact area that can be defined as sustenance agriculture, inefficient, not in conformity with the present norms of the Communitarian Agriculture Politic and which practiced in the present manner of organization and technical endowment cannot be an alternative for the durable development of the area. Some studies recommend the practice of organic agriculture in the area. But this is based on extremely precise rules and just the obtaining of the certification of the products as biological agricultural products is nearly impossible for most of the households in the area under the present conditions of agricultural practice and because of the rules that such an undertaking presupposes.

B. Forestry Forestry holds a significant place in the economy of the area due to the availability of large forest areas, both resinous (fir tree, spruce fir) and leaf-bearing woods (beech, common oak, oak tree). Wood made possible the development of several traditional trades such as tub makers, shingle splitters, cask hoopers, wheelwrights, as well as several new trades such as the ones related to the furniture production. Such trades are practiced in all the localities in the impact area of the project. At present, forestry faces with problems related to the administration of the forestry fund and the environment degradation, such as: irrational woods clearing in the area, low productivity of the woods in the polluted areas, extension of the lawns against the afforested areas with respect to the same phenomenon, the lack of accessibility to the entire area of the forestry fund, etc.

C. Industry Industry in the project’s immediate impact area is based on the soil and subsoil resources known and recovered since the oldest time: mineral resources, wood and construction materials.

Mining is the oldest trade in the area , being practiced since the time of the Romans invasion in Dacia. The mining industry was and will still be a basic component of the industrial activity in the area. In Roşia Montană, Abrud and Bucium, mining represents the prevailing industrial activity and it was a significant material support in the life of the inhabitants. The non-ferrous ore mining, practiced since the Roman administration period, particularly developed in the period 1970 – 1985. But, after 1990, following a permanent cost increase, the liberalization of the prices both for ores and electricity, as well as several viable restructuring and revamping programs missing, the mining activity in the area faced with a decline. This decline of the mining activity was accompanied by the worsening of the economic condition of the people by the decrease of the incomes, the increase of unemployment, the reduction of the standard of living. Besides mining, the wood processing industry developed as well in the area, in most of the localities within the impact area of the Project. In this respect, S.C. Montana S.A. can be specified; whose scope of activity is wood exploitation and furniture production. The products of the company are sold on the foreign markets and its management has shown the intention to further develop the business, thus offering the opportunity of occurring new jobs. The economic results of this compamy rank it in the year 2005 number 1 in the top of business and profit in Romania, ALBA County, domain 36: Furniture production and other industrial activities.

In the town of Abrud there is a garment enterprise S.C. Filatura de Bumbac that absorbs the female working power. S.C. Cuprumin S.A. also has its headquarters here, bit the non-ferrous mining exploitation has been stopped in January 2007, merely managing to keep 250 working places for the maintenance of the drainer pool. This company demonstrates that in the mining industry too the only viable alternative is the privatization process.

D. Tourism resources The tourism resources of the immediate impact area of the RMGC project cannot be treated but in the context of the entire area of the Western Carpathians. The Apuseni Mountains are a fabulous area as far as tourism is concerned. The Valley of Arieş that goes through this side of the Carpathains from west to east is one of the most picturesque of the entire Carpathian area. It concentrates numerous natural and man-made resources for tourism of extreme beauty and attractiveness. Natural tourism resources. Nature has endowed this area with a wealth of elements of major attractiveness. The main attractive element is the geography, next to which other geographical factors contribute to the picturesque of the landscape: climate, soil, hydrographic network, vegetation and fauna. The relief includes the slopes of the Bihor and Găina Mountains, the Massi of Trascău and the peaks of the Big Mountain. The Mountains of Bihor, which are the main axis of the Apuseni Mountains have altitudes that oscillate between 1400 and 1800 m, dominated by a few peaks such as: Curcubăta Mare (1841 m), Piatra Aradului (1429 m), Găina (1486 m). The last of these has a large, bellied surface with extended fields, where they annually hold the renowned ‘Girls’ Fair’. The relief of these mountains is like a unitary peak with heavy massive forms and inclined but uniform slopes, generally having an alpine aspect. The area between Bihor and the Big Mountan is formed of limestone, in which the wind has carved numerous forms that can be seen between the Carst Complex Ocoale-Scărişoara, with the caves: the Iceberg of Scărişoara, Pojarul Poliţei, Poarta lui Ionele, Coiba Mare and Coiba Mică or a series of gorges, one of which being Ordâncuşei, numerous dells and sinkholes that make up an extremely attractive landscape. The Big Mountain, with altitudes of approx. 1600-1800 m, culminates with the peaks Muntele Mare (1862 m) and Balomireasa (1632 m) being parallel to the Valley of Arieş. It is like a large and even saddle at an altitude of 1600-1800 m from which uniform peaks are dislocated towards the Valley of Arieş, without any intervening slopes or precipices, excepting the portions where crystalline schists pop up and the relief becomes spectacular, with impressive forms as in the Scărişoara-Belioara area. In the Eastern areas the limestone belts have generated carst formations, the rivers going through wild gorges like those of Pociovalişte, Runcului, Poşegii. The Trascău Mountains are imposing with their carts relief which was formed in a limestone belt that stretches towards the North-South, from the North of the Arieş towards the Valley of Ampoiului forming the massifs of Bujor, Bedelea, Colţii Trascăului, Platoul Ciumarnei. As altitude they exceed 1200-1300 m only in some of their peaks such as: Secul (1282 m), Turburelu (1304 m), Trascău (1217 m), Poeniţa (1437 m), Piatra Cetii (1233 m), Negrileasa (1364 m), Albii (1275 m), Dâmbău (1569 m). Along with these there is a series of caves such as: Poarta Zmeilor, Huda lui Papară from the Bedeleu peak, then Bisericuţa near Necrileşti, Peştera Liliecilor on the Valley of Ampoiţa or the ones in the Massif Dâmbău and Corabia near Feneş. The Metaliferi Mountains have small or average heights (around 1000 m) with surfaces gentle surfaces pierced here and there by volcanic peaks or bald rocks of Jurassic limestone - high points of tourist attraction. The rarely exceed 1000 m in the peaks of Vâlcoi (1348 m), Petriceaua (1142 m), Breaza (1121 m), Vârful Mare (1011 m). Interesting by means of the forms generated by the volcanic

63 activities are Detunata Flocoasă (1528 m) and Detunata Goală (1040 m) where the columns represent tourist attraction spots, both having been declared monuments of nature.

From the point of view of the climate, the area has a varied climate from moderately continental, in the Valley of Arieş, to peculiarities determined by its position in the central part of the Apuseni Mountains, on their Eastern slope being under the direct influence of the masses of moist and cold air, on which the Southern and South-Eastern influences overlap, which bring along during the whole of the year masses of hot air of tropical origin, to the alpine climate on the peaks of the Bihor, where the layer of snow remains intact until the middle of the month of May. Because of these conditions, the greater part of the area, down to lower altitudes has annual temperatures of 6º C, decreasing along the lower valleys. In some areas the winter days with maximum temperatures of 0º C vary between 80-110 days a year (in the period October-April),while in the basins, their number is of between 60-90 days a year (in the interval November-March). Days with temperature variations that exceed 25º C are only in the inferior basins of the Valley of Văii Arieş and the Valley of Ampoi in the period March-November (80-90 days a year). The number of warm days decreases along with the altitude. Rains are abundant in the area, varying between 1400 mm in the West of the territory, on the high peaks of Bihor and the Big Mountain up to approx. 1100 mm in Arieşeni and only 680 mm in Avram Iancu. Towarsd the East we have less than 800 mm. Snow falls for 60-70 days annually in the mountains in the inter-mountainous valleys. In the mountainous area the layer of snow lasts from the month of November till the month of April, exceptionally more. The most favorable regions for practicing winter sports are the mountain heights of over 900 m where the layer of snow can be of 30-40 cm. The wind is adapted to the large lines of the relief, so that in the mountainous regions the Western circulation is predominant, in Câmpeni, the dominant directions being those of the West, South-West, etc. What is of importance in the area is the existence of an atmospheric calmness that permits the highlighting of a sheltering topo-climate, especially in the basins on the Valley of Aries.

From the hydrographical point of view , Arieş is a valley, which next to the extraordinary picturesque drains a large part of the Apuseni Mountains on the West-East direction. The headspring tributaries gather their waters from the Massif of Bihor by means of the White River and the Cobli brook, which unite in the area of the township of Arieşeni and from here they flow downstream under the name of Arieşul Mare. On the right side, the White River and then the Arieşul Mare, receive a series of waters from the large slopes, brooks and waterfalls. These are Valea Vîrciog, wiuth the waterfall bearing the same name, then the Valley of Onions Galbena, Bucinişul and Iarba Rea. On the left side, next to the township of Gîrda de Sus, the Arieş receives the waters of the valley Gîrda Seacă, recently united with Ordâcuşa. Between them there is the closed basin Ocoale-Scărişoara with numerous subterranean drainage. After the junction with Gîrda, the Arieşul goes through a region with a different petrographical construction, meeting in its way seeds of limestone that it carves into gorges (Cheile Albacului - Zugăi). On the territory of the township of Albac, also on the left side, the Arieşul Mare receives the waters of the river Arada, which delimits the Bihor Mountains from the Big Mountain. Upstream from Câmpeni, the

Arieşul Mare is united with the Arieşul Mic that comes from the right, and gathers its waters from the Massifs Curcubăta Mare and the Mountain Găina. After the junction they bear the name of Arieş and receive from the left from the Big Mountain a series of fast and picturesque rivers such as: Bistra, Valea Mare, Dobra, Valea Caselor, Lupşa, Poşaga, Ocoliş and on the right the Valley Dolii, Sohodolul, Abrudul with Roşia Montană, Cioara, Valea Largă and Remetea. The average annual debit of the Arieş is of 3,5 mc/s at Scărişoara, 12,4 mc/s at Câmpeni and 19 mc/s at Baia de Arieş. Towards south the Ampoi is flowing which gathers the waters of brooks from the Dealul Mare, the peak that delimits its basin from the basin of the Arieşului. The most important tributary of the Ampoi are Feneş and Ampoiţa, which it gathers from the slopes of the Metaliferi Mountains. Generally, the vegetation of the Apuseni Mountains presents a large variety and is a great tourist attraction. It is vertically superposed according to altitude of the relief and the climatic layers. This layering is less evident than in the case of other mountains. Here, the pastures are not so widespread, only in the Bihor Mountains and in the central area of the Big Mountain at altitudes of over 1600 m, in turn the deciduous and coniferous forests are more widespread. In the recent years, after 1990 the forest areas have been irrationally deforested, even leading in some parts to ecological disasters. That is because the forest exploitation has remained one of the few occupations of the dwellers of the Apuseni Mountains. Nevertheless, the tourism potential of the extremely diversified vegetation should not be neglected. The mountain voids from the Big Mountain or Biharia attract visitors by means of the colorful spring, summer and autumn flowers, the large spaces with splendid perspectives, locally disturbed by the solitary apparition of a rocky edge. Many present plant species are varieties of our flora and present a scientific interest, some being protected by law in various natural reservations. In the natural reservation of Scărişoara-Belioara, there are the bear’s grapes soapwort, etc. The lion’s foot can be seen at only 500 meters altitude, this being the lowest vegetation point of this plant in Europe. At Baia de Arieş the ‘emperor’s beech’ (Fagus Sylvatica) attracts one’s attention – it keeps its fruit brown in winter, while in the natural reservation of Vidolm the larch forests are growing (Larix Decidna), a species of pine with falling needles. There are also many forests fruits interesting for tourists: raspberries, blackberries, blueberries, wild strawberries or different varieties of mushrooms to be seen all over the forest covered massifs. The forests in this area shelter a large variety of fauna, which permits sports hunting. In the mountain forests live such animals as the deer, the bear, the lynx and the marten, while in the oak forests there are the wolf, the boar, the rabbit and other species of interest.

A particular attraction with respect to Valea Arieşului and most of its affluents is the piscicultural fauna, with various highlighted zones: trout zone (Bistra, Lupşa), umber zone, broad snout zone, dace zone. Part of the lakes from Roşia Montană (Ţarina, Anghel, Brazi, Muntari and Mare) have been populated in 1968 with trout of American origin and another part was populated with common trout in 1979. Subsequently, the lakes from Roşia Montană have been populated with carp, crucian, and dace.

The rare trials of the authorities to protect the environment of the destructive aggression of the economic activities, made during communism, have completely failed within the last years. Gold exploitation in Baia de Arieş has always practiced with the help of cyanides, but no one has been interested in carefully capturing these in well-constructed and secure pools. It is very frequent that a rain shower washes out the deposits of sterile, simply deposited in the valley of the Arieşului and brings them into the Arieş. The areas declared natural reservations are left without protection. Nobody has any kind of responsibility in caring for them. It is important to mention some of the reservations. The carst plateau Scărişoara is represented by a closed basin created by a partially blind basin, the Ocoale brook with water loss spots (sinkholes) and a layered system of caves corresponding to the phases of depth of the hydrographic network. The Ocoale Brook in the superior basin is developing on schists and impermeable sandstone with a permanent course. At the contact with the limestone, the water is lost in a sinkhole, while when the debit of the water is big it continues its track, only to be lost again in other sinkholes (three), situated downstream. The water that is lost in the sinkholes of the Ocoale Valley, which looks like a large basin with a flat bottom, reappear more southly at the edge of the plateau, in the Gîrda Seacă Valley, in the strong water spring at Coteţul Dobreştilor. The Ocoale-Coteţul Dobreştilor system represents the active drainage of the closed basin Ocoale, respectively the inferior floor, active, inaccessible for a person. Above this, there are other two layered systems of caves. The first is constituted by a few sinkholes from the cave called Avenul of Şesuri, which is a few minutes from the hamlet Gheţari. It is a cave that permits access to a network of layered galleries held active by a little brook – the Brook of Voiaga – whose water, after it goes through the cave, sees daylight in the water spring of the Poliţei brook. The third superior system, fossil, is comprised of the caves Gheţarul Scărişoara and Pojarul Poliţei. Both have entrance through a strong cave and have a richness of cave formations (the coral-like incrustations and the crystals of transparent calcite). The Cave Peştera Gheţarul Scărişoara was formed in triassic limestone on the interflowing between the basins Ocoale and Gîrda Seacă at the altitude of 1165 m. The cave shelters a fossil iceberg which does not melt because of the cold air deposited during winter at the bottom of the cave, being accumulated here without the possibility of evacuation in the inferior areas, situated at the base of the ice massif, calcite formation develop (stalactites, drapes, domes, etc.). This is the area destined to scientific research. It comprises two sectors: a north- eastern one (Small Reservation) and a southern one (Great Reservation). The Iceberg at Vârtop is situated on the left slope of the Gîrda Seacă Valley, close to the hamlet of Casa de Piatră. It is a fossil cave formed in tithonical limestone concreted with perennial ice at the entrance hall, declared a monument of nature from 1957.

Detunata Goală

Detunata Flocoasă

The Detunata Goală (1048 m) and the Detunata Flocoasă (1258 m) – the latter received its name from thelayer of pine forests that cover it, not permitting an easy exploration of the geological structures. The Detunata Goală is partially lacking a forest layer, being in daylight a spectacular magmatic anatomy. The natural reservation Întregalde – situated in the Valley of Necrileşti (Găldiţei) and in the Gălzii Valley, to the north and the sounth of the village Întregalde, has a surface of 403 ha, where the lion’s foot can be found (rar. intregaldense). The fossil spot Gîrbova de Sus (1,5 ha) presents a reef limestone wall, also called limestone wall of Leitha. These are badeniene limestones that, besides the mollusk, corral and limestone algae remains, contain many remnants of echinidae. A 32-meter holm with a 2-meter diameter trunk can also be found here. Snail Hill Gălzii (1 ha) is a fossil spot at the northern edge of the highway wich leads towards the Valley of Arieş in the township of Avram Iancu. The larch forest of Vidolm – forests reservation situated on the limestone rocks of the Trascău Mountains, in the vicinity of the Vidolm township, represents the lowest altitude at which the larch grows in our country. The Vulcan Mountain (5 ha) – a geological reservation situated on the watershed between the Metaliferi Mountains and the Valley of the White Criş.

The tourist attraction of the natural beauties is made whole thanks to the numerous material cultures which represents inestimable values: historical monuments (citadels, monasteries, and churches), memorial monuments, cultural objectives, elements of ethnography and popular art. From the ensemble of anthropic attractions of tourist interest are the following: • Elements of popular architecture from the churches and wooden houses specific to the Moţ Country, the Bucium area and of the ‘mocani’ of the Big Mountain, as well as some technical constructions (water walk mills for woolen cloths, water mills and straw). The numerous constructive details, mostly sculpted in wood, give their architecture a pronounced archaic, original character; • The Folk costume is distinguished by a few elements specific to this area and these are evidently micro-zonal influences, like the costume of the ‘buciumani’,, considered ‘more elegant’ because of the economic and social conditions. (Gold was always exploited here) On the middle course of the Arieş (the villages of Poşaga, Ocoliş) a folk costume special because of its structure, ornamentation, colour and head accessory has crystallized (the ‘conci’) which in this area is frequently worn for holidays and fairs; • Elements of folk art - generally the Apuseni area is rich in folk crafts, especially wood carving and textiles. Wooden recipients and whistles are well-known in this area, made by craftsmen coming from villages specialized in woodwork: Avram Iancu, Vidra, Horea, Albac, Scărişoara, Gîrda, Arieşeni, etc; • Folk manifestations . The musical and choreographic folklore in the Apuseni Mountains area is highly varied. There is a complex folkloric creation here, the spiritual element transmitting long-preserved traditions concerning song sung for diverse occasions. The epic song is especially developed, mirroring the social uprisings of Horea, Cloşca, Crişan, Avram Iancu. From the dances, we mention the ‘ţarine’, in various forms, the ‘învârtita’, the ‘fecioreasca’, etc. At fixed dates –annual, weakly or on other occasions – certain manifestations take place among which those on Muntele Găina (July), Poiana Călineasa (14 July), Poiana Negrileasa, Sălciua de Jos, Lupşa and Câmpeni.

In Roşia Montană two important events are yearly organized (in august) attracting tourists in the region, namely: - „the Miner’s Day”, an old custom, that celebrates the mining traditions of the community, - „Hayfest”, a music show for young people that reached its third edition in 2006.

• Monuments and places connected to the historical pas. These are numerous and they remind of the battles between the workers under Horea, Cloşca and Crişan, that of Avram Iancu against Austro-Hungarian exploitation. The most important monuments are in Albac, Abrud, Câmpeni, Horea, Lupşa, Bucium, Avram Iancu; • Muments of religious architecture , remarkable for their artictic value, authenticity and age, present in the localities in the area, such as: - Wooden churches - Arieşeni (1791), Gîrda de Sus (1781), Lupşa (1429), Ponor (1783), Sălciua (two churches from the 18 th century), Vidra (17 th century – painted in 1693), Brăzeşti (1779), Goieşti (1712), Lăzeşti (sec XVIII), Poşaga de Sus (1752), Segacea (1650), Sartăş (sec. XVIII), Cătunul Sub Piatră (1797), Valea Verde (1725); - Other religious monuments:

- The orthodox churches of Lupşa (1421 and 1835); - The orthodox churches of Abrud (1270); - Wooden church in Romanic style - Bistra (1844); - United church - Roşia Montană (18 th c.); - Lutheran church - Abrud. • History, ethnographical museums and memorials : - memorial house of Horea, leader of the mutiny of 1784, township Horea, village of Fericet; - the Ethnographic Museum of the ‘apuseni’, with over 10.000 objects (Lupşa); - ‘Avram Iancu’ Museum, Campeni: comprises archeological objects made in the Apuseni Mountains, in the building of the General Headquarters of the armies of Avram Iancu, in the time of the Revolution of 1848 - 1849; - Avram Iancu birth house, a museum since 1924, township of Avram Iancu, Alba County: 46 km, through Campeni, Mihoiesti dam, on the Valley of Ariesul Mic; • The ruins of some Roman sites - Abrud (2 nd -3rd c. e.n.), Lupşa, Sat Tîrsa, archeological spot Poşaga (Dacian thesaurus). In the impact area of the RMGC project tourism can be practiced for relaxation and rest, but also circulation tourism (transit tourism and itinerary tourism), tourism for fishing and sports hunting, winter sports tourism, speo-tourism. The main factor that discourages the practicing of tourism in the area is the infrastructure. The roads are not modernized, badly maintained. The numerous tourist objectives have unpaved roads leading to them. On the Valley of the Arieş, between Turda and Abrud, there has been a shallow railway but it did not get the necessary support to live through the market economy. Next to the tourist resources, the material basis has an important role in the offer of the territory, permitting the exploitation of its tourism potential. Accommodation services represent, next to transportation, public alimentation and recreation one of the main ingredients of the tourism industry and an important factor of stimulation of the tourism demand. The existent network of accommodation units in the impact area of the RMGC project is lacking. It is comprised of two hotels, of inferior standard level (in Câmpeni and Abrud), and some agro-touristical pensions with a low number of accommodation. Most of these offer a low level of comfort.

E. Services The services are poorly developed in the area, the road goods and passengers transportation and services such as hairdressing prevail. We mention in this respect the companies S.C. Cris Trans SRL, şi SC Arieşul SA din Câmpeni specialized in road transportation. The financial services are provided by CEC S.A. units. The employees in the finance- banking services field are almost unavailable in the communes from the impact area, except for the two towns, Abrud and Câmpeni where an average number of 14 employees work in the finance-banking sector and 36 respectively in 2005.An increase of the number of employees in the transportation and mail services is noticed in Roşia Montană from an average of 3 employees in the period 1997-2003 to 59 employees in 2005.

F. Transportation infrastructure The localities in the immediate impact area through their geographical situation represent an area of intersection between the national transportation roads DN 74 and DN 74A, which ensure the link with the towns of the county (Câmpeni, Zlatna – Alba Iulia) and those in the

69 vicinity (Cluj Napoca, Deva). The insufficient modernization of the main national roads, the inexistence of an international road and of a railway transportation system leads to the losing of the advantages offered by the geographical position of the localities. The density of the county and communal network of roads varies according to the region and the situation of the human localities. Their general state is poor, varying from earth roads, inaccessible to vehicles, to paved or even asphaltic roads, in a advanced state of decay. The street network even in the towns is formed mostly by paved or earth roads. A synthesis of the state of the roads in the impact area was laid down in the Strategic Socio-economic Development Plan of the township of Bistra 40 • Earth access roads – impracticable; • Not taken care of not correspondingly exploited (lack of ditches/gutters, degraded asphaltic layer); • Lack of road bridges over the Arieş (L. Merilor, L. Largă); • Lack of small bridges on the communal roads that traverse water courses; • Roads destroyed by water, unconsolidated support walls. The area of the Apuseni Mountains is lacking railway transportation. In 1995 the only railway connecting the town of Abrud to the town of Turda (the ‘Mocăniţa’ train) was dissolved, lading to the degradation of the existent railway line. For tourists this was a special attraction, its making it functional again might contribute to the increase of the uniqueness of this area and the beauty of the region it traverses. The transportation services are mostly ensured by private operators. Public transportation ensures connection between the major towns of the the area and of the townships with its belonging villages, but the technical endowment is often precarious and the frequency of the connections low.

F. The economic agents of the area

The data provided by National Fiscal Administration Agency, General Public Finance Directorate of Alba County shows the evolution of the economic activities (as number of economic agents and turnover) in Abrud, Câmpeni and Roşia Montană, where the main fiscal contributors of the impact area are situated, as shown in the charts below:

Table 3.5. 7. The evolution of the number of economic agents in Abrud Economic Year activity 1998 1999 2000 2001 2002 2003 2004 2005 Agriculture 0 0 0 0 0 5 6 11 Commerce 127 138 138 130 133 130 145 134 Constructio 1 2 2 3 4 4 6 6 ns Industry 17 29 32 29 38 33 46 48 Service 5 3 3 4 4 4 7 11 Supply Tourism 1 1 1 1 1 2 3 4 Total 151 173 176 167 180 178 213 214 Source: General Department of Public Finances Alba

40 Planul strategic de dezvoltare socio-economică al comunei Bistra, pag.22. 70

We observe that the town of Abrud the increase of the economic agents of the industry and the apparition of economical agents in the agriculture has started in 2003. A timid beginning is also observed in tourism, and in the sphere of commerce the number of economical agent is relatively constant. The main economical agents that operate in Abrud and their object of activity are: - S.C. Filatura de Bumbac S.A. – garments; - S.C. Cominco S.A. – industrial and civilian constructions; - S.C. Cuprumin S.A. – non-ferrous mining industry; - S.C. Cominco Transilvania S.A. - industrial and civilian constructions; - S.C. Cupru Sind S.A. - industrial and civilian constructions.

Table 3.5.8. Te evolution of the number of economical agents in Câmpeni ECONOMIC YEAR ACTIVITY 1998 1999 2000 2001 2002 2003 2004 2005 Agriculture 0 0 0 0 0 7 6 11 Commerce 168 170 170 176 167 188 186 182 Constructions 7 9 6 8 8 13 15 17 Industry 30 39 40 40 45 56 81 95 Service Supply 5 4 4 4 3 3 4 8 Tourism 0 0 2 3 2 4 14 17 Total 210 222 222 231 225 271 306 330 Source: General Department of Public Finances Alba

In the town of Câmpeni the dynamic of the number of economical agents is also increasing because of the industry and commerce. In the respective period new economical agents are registered in the agriculture and number of those in construction is also rising, which denotes an increase of investments in homes and productive spaces. The potential of the construction companies may be used by the RMGC company for the construction of the infrastructure of transposition and of the exploitation. The main economic agents in Câmpeni are: - S.C. Montana S.A. – wood work; - S.C. Maria Producion SRL – reconditioning and furniture production; - S.C. Monopolis S.A. liquor and soda production; - S.C. Cris Trans SRL – terrestrial transportation; - S.C. Hermes Montana SRL – garments. In Câmpeni we notice the recent apparition of a new economic agent, with a relatively new object of activity in the impact area - S.C A.C.E. SRL, a branch office of a company from Cluj, specialized in the production of electrical cable, with approx. 250 workers.

Table 3.5. 9 The evolution of the number of economical agents in Roşia Montană Economic Year activity 1998 1999 2000 2001 2002 2003 2004 2005 Agriculture 0 0 0 0 0 0 1 2

Commerce 17 18 18 17 17 18 19 21 Constructio 0 0 0 0 0 2 3 3 ns Industry 4 5 6 6 6 5 7 10 Service 0 0 0 1 1 3 3 5 Supply Tourism 0 0 0 0 0 0 0 0 Total 21 23 24 24 24 28 33 41 Source: General Department of Public Finances Alba

In Roşia Montană we notice the doubling of the economic agents in the analyzed period, the most spectacular growth being registered in the last 3 years. The apparition of some service supply and construction companies is the result of the impact that the RMGC project has on the area. In tourism there is no economical agent. The turn-over registered by the economic agents in the area generally follows the dynamic of the number of companies, although it is influenced by the restraint of the activity in the mining sector. The dynamic of the latter, especially in the first five years was strongly influenced by the rate of inflation (59,1 % in 1998… 22,5% in 2002), which only in the year 2005 goes under the critical level of 10 %.

Table 3.5. 10. The evolution of the turn-over of the economical agents of Abrud (thousand RON) Economic activity 1998 1999 2000 2001 2002 2003 2004 2005 Agriculture 0 0 0 0 0 777 2701 9749 Commerce 43662 54860 77859 120040 172993 244339 305813 320392 Constructions 227 77 81 18610 30998 68479 83724 104842 Industry 2502 14741 44706 84788 660663 1134696 1170374 1165901 Service supply 287 104 185 364 784 3804 10808 18590 Tourism 0 0 0 7011 8471 133 434 597 Total 46678 69782 122831 230813 873909 1452228 1573854 1620071 Source: General Department of Public Finances Alba

We notice that in Abrud the majority of the income form sales comes from the industrial activity (72 % in 2005) while tourism and agriculture are insignificant. (Under1%). Although new economic agents appear that operate in the industry, the turn-over of these last three years of the analysis period remains relatively constant (actually it reduces in comparable prices and that mainly because of the activity in the exploitation industry in the sphere of services and constructions.

Table 3.5.11. The evolution of the turn-over of economic agents in Câmpeni (thousands RON) Economic Anul activity 1998 1999 2000 2001 2002 2003 2004 2005 Agriculture 0 0 0 0 0 7272 5309 8319 Commerce 60249 105921 146203 221325 287360 409657 491174 573080 Constructio 1875 2119 2528 7530 10184 20733 34387 32337 ns Industry 65129 130505 178547 251781 371903 512211 593319 603431

Service 212 93 161 89 399 381 4528 2934 Supply Tourism 0 0 12 171 1787 1315 2634 4999 Total 127465 238638 327451 480896 671633 951569 1131351 1225100 Source: General Department of Public Finances Alba

The highest incomes in Câmpeni are registered by the companies of industry (49,2% in the last year) and commerce (46,8 %). A certain depression in the dynamic of the industry if we consider the comparative prices in registered in 2005 in comparison to 2004. The income from tourism and service supply has a reduced mass from the total of the income registered by the economic agents, there being significant reserves in the economic potential of these activities. Table 3.5.12. The evolution of the turn-over of the economic agents in Roşia Montană (thousands RON) Economic activity Year 1998 1999 2000 2001 2002 2003 2004 2005 Agriculture 0 0 0 0 0 0 208 1610 Commerce 5200 5824 8397 12010 16795 22750 26951 27096 Constructions 0 0 0 0 0 5589 9681 9678 Industry 344 413 541 1083 182385 264261 213520 264470 Service supply 0 0 0 125 89 3674 8755 16246 Tourism 0 0 0 0 0 0 0 0 Total 5544 6237 8938 13218 199269 296274 259115 319100 Source: General Department of Public Finances Alba

In Roşia Montană the most important income is from the economic agents of the industrial activity (83 % in 2005); the income from the agricultural activities are insignificant (0,5 %), while the tourism activity does not register any income. The service supply sector is developing in the recent years, because of the presence of the RMGC company in the area, towards which a series of services are directed: transportation, business consulting, testing and technical analysis, auto and equipment rental, auto repair etc.

3.6. SWOT ANALYSIS

The SWOT analysis is a synthetic diagnostic of the impact area from the economic and social-cultural view points. Its purpose is to identify the strengths and weaknesses as well as the opportunities and the threats caused by the external environment. The information provided by this analysis supports the decision taking process recommending the following actions: build on strengths, remove the weaknesses, use the opportunities, and remove the threats. In table 3.6.1 is presented a SWOT analysis, starting from the realities of the area, which will further allow the assessment of the impact the RMGC mining exploitation project will have on the area.

Tabel 3.6.1. SWOT ANALYSIS STRONG POINTS WEAK POINTS Location in the area Location in the N-W part of Alba county in the Uneven relief specific for the mountaineering

73 center of Apuseni Mountains, close to (national zones generates difficulties for the road) NR 74 and NR 74 A, that provide a establishment of major infrastructure projects connection with the county’s towns (Zlatna – Alba Iulia), as well as with important towns from neighbour counties. Natural conditions/Environment condition • The ore deposits not mined out • Difficult access to the natural reservations • Presence of numerous natural reservations because of the poorly developed • Upper course of Aries river is not polluted infrastructure; and it can supply water • Excessive pollution of certain localities of • Attractive diversified landscape and high the zone because of the non-responsible ore tourism potential mining operations developed throughout • Presence of some large surface areas with the years as well as because of the best conditions for forestry vegetation domestic and forestry waste growth • Non – regulated water courses generating • Good potential for animal breeding conditions for flood events Social capital • The skilled labor force for industrial • Population aging activities ( mining and wood processing • Migration of population resulting in the particularly ) population leaving the rural zone • Hard working people, hospitality and • More than 60% of the population is mutual assistance depending from economic point of view. ( • Ethic and cultural diversity children, unemployed, housewives, • Multi-cultural feature of the community pensioners) • High poorness rate of the population from the rural localities • High unemployment rate • Lack of specific programs addressing the disadvantaged groups ( children of poor familites, unemployed, old people living lonely and with low incomes)

Transport and communication infrastructure • The zone is situated close to the DN 75 and • Lack of railway infrastructure for normal 75 A transport • Good county and communal road networs • Poor condition of the county , communal • Fixed phone network and cell phone and forestry roads networs • Bridges and footbridges crossing over • Cable television particularly in the urban water courses are damaged in some area localities • Existence of narrow gauge railways • Cable TV not available in all the villages infrastructure which is favourable for tourism development Infrastructura tehnică • Methane gas • All the localities are electrified • Drinking water networks are only partly • Drinking water source available in the zone available and they are mostly damaged

• Not all the rural or urban localities are provided with sewage networks • Lack of ecological ramps for domestic and industrial waste collection • Lack of power supply Business and tourism infrastructure • Availability of road ways which make • Poorly developed tourism infrastructure easier the access to the zone • Few accommodation facilities

Social and education infrastructure • Hospitals and medical care facilities are • In some villages the sanitary infrastructure available is not available • Houses of culture • Poor endowment of schools and their • Schools and kindergardens maintenance in some localities Economy /Labor market • Long lasting mining traditions • The development of the small and • Well developed wood processing sector medium scale enterprises is not sufficient , • Qualified labour force particularly in the field of service supply • Decline of traditional trades • Young people emigration

Tourism • Potential of natural and anthropic tourism • Infrastructure for access to the tourism which is very rich and diversified zones is not well maintained • Presence of attractive natural reservations • Lack of people education in the field • Presence of some historical monuments • Local private initiative is missing and valuable archaeological vestiges • Insufficient tourism promotion • Preservation of some traditions and ethnographic resources in the localities of the zone • Availability of people who are ready to get involved with the agriculture tourism activities

Agriculture • High agriculture potential for sheep and The properties have been excessively cattle breeding dismembered – low productivity, high costs • Local tradition in the field of animal • Very poor technical endowment breeding • Labour force engaged in farming activities is old • Lack of financial resources • Lack of some commercial farms and associations of the farmer groups or cooperatives type

OPPORTUNITIES THREATS

Territorial positioning Advantageous position in relation with Position of localities is not favourable for the regional and national projects focused all the villages from the infrastructure on transport infrastructure point of view Natural conditions /Environment condition • Integration in the national system and • Industrial pollution and domestic and for maintaining the bio-diversity and forestry waste presence diversity of the fauna, flora and • Funds for the current environmental habitat resulting in the tourism rehabilitation are not sufficient development • Uncontrolled tree cutting and thus resulted in the cutting more trees than the forestry fund regeneration; Social capital • Establishment of new jobs by • Lack of economic stability with mining activity revival negative social effects • Enhancement of the qualification (unemployment , inflation, rate by attending qualification population impoverishment) courses ( including those organized • Continuation of the migration to the by RMGC) urban zones and emigration • Enhancement of the entrepreneurial • Increase of the price for the dwelling initiative . Increasing funding rate in purchase and construction; the social field providing the social • Enhancement of the local autonomy service development in the fields of education and culture • Ever bigger interest of foreign without clearly defining the new tourists for a better knowledge of funding sources the local cultural features from the Romanian villages

Transport and communication infrastructure The projects referring to the rehabilitation Increase of the transport and and development of the road infrastructure telecommunication service prices will make easier the access in the zone and will result in the enhancement of the tourism attraction Technical infrastructure • Financing programs based on • Lack of financial sources for European funds availability for the supporting the co-financing of the development of the technical and urban projects implemented with EU infrastructure assistance. • Lack of financial sources from the local budget to support the infrastructure projects Business and tourism infrastructure • Possibility to access the European • Damaging of the tourism objectives funds of the local authorities and because of the unsuitable maintenance, economic entities for the pollution and tourist aggressiveness development and modernization of • There have not been initiated programs

the infrastructure for the development of the tourism infrastructure damaged for good for tourism practice in the zone Social and education infrastructure • Presence of the Government programs • Lack of appropriate programs for for the education development within supporting the pupils from the villages the rural localities could jeopardize the education chance • Presence of some NGO’s acting in the equality of the pupils social field. • Enhancement of school abandon process Economy /Labour market • Declaration of the zone as “ • Risk that the mine closure is final in the disadvantaged zone “ could determine zone and thus severe problems occur the enhancement of the business • Lack of the attractive jobs for the environment interest highly skilled workers from the rural • Interest of RMGC company to develop localities the gold mining project in the zone • Privatization of Cuprumin company could launch the copper ore mining • Attraction of new investors as a result of the mining relaunching project success • Availability of some funding programs for the business development within the rural environment (including the Micro-credit program of RMGC) Tourism • Ever increasing interest of the foreign • Risk for the flora degradation within the tourists for a better knowledge of the protected areas and of other natural and local cultural features of the Romanian anthropic elements because of the villages pollution and uncontrolled tourism • Availability of a program for the • In situ destruction of some beneficiation of the historical and archaeological elements as a result of cultural heritage initiated by RMGC the RMGC project • Construction of some cottages which • Competition between the localities can be used for tourism activities, too categorized as “ tourism resorts” Agriculture Possibilities for the completion and Implementation of a subsistence farming is valuation of some ecological and not viable under the EU integration traditional products circumstances

4. THE PROJECT’S ECONOMIC AND SOCIAL IMPACT ON THE AREA FROM THE PERSPECTIVE OF SUSTAINABLE GROWTH

4.1. The acquisition of properties and land assignment contracts

Terminology: ü Acquisition- form of trade that consists in obtaining, in advantageous conditions, something valuable, a rare object (DEX, 6.). ü Property- the complete possession of an asset based on a recognized right. ü Assignment- the transfer of debts to another person according to a deed of assignment; giving up a right willingly in somebody else’s advantage. ü Relocation- using a sum of money received as compensation for moving into a house to be chosen freely by the owners that consented to move into a new home. ü Contract- agreement concluded as a consequence of an understanding between two or more persons to create, to amend, or to end rights or obligations established in their bilateral or multilateral relations. ü Relocation- the expression of the option of the householder appropriated with a new house, build in one of the relocation home (Alba Iulia, Piatra Alba).

RMGC started the process of property acquisitions beginning with the month of June 2002. In exchange for transferring ownership, the owner receives a `compensation package` whose value can be used freely by the owners for the acquisition of a new home, built by RMGC in one of the relocation locations from Alba Iulia or Piatra Alba, or which can be received in cash. The relocation package 41 is the result obtained after the conversion in cash of the compensation aggregate value resulting from the evaluation of (i) the house with its additional equipment and annexes (ii) the different elements of the household (iii) land and fruit trees. The relocation package 42 is evidenced according to the following general rules: the removed person has the possibility to build under their own management, the right to choose a home within the limits of the compensation received (including one of the models offered by RMGC), and the right to modify the minimal equipment 43 of the home within the limits of the available aggregate value of the compensation. The eligibility for relocation presupposes that the person reside in the home that is evaluated, and offered compensation for.

Supposing that the person opts for a new building at Piatra Alba, RMGC bears 25% of the total cost of the construction (the home) and the owner foots the rest. The prices practiced by the company for housing buildings in the Alba Iulia and Piatra Albă localities are shown in time intervals in the 4.1.1 table

41 The newspaper Roşia Montană Project from 16.11.2005, page. 3 42 Remade after the Roşia Montană Project, page 3. 43 The structure of the minimal endowments package includes the following elements: a)simple whitewashing of the walls and ceilings; b) oil kitchen and bathroom dyeing up to 1.5 meters height, c) wood painted carpentry, d) wood flooring in the rooms and halls, e) mosaic floor in the bathroom kitchen terrace, pantry, f) aluminium windows with thermopane glass, g) sclivisit cement floor in the cellar, h) ceramic stoves, i) electric boiler for hot water. 78

Prices for houses build at Piatra Albă Time period 1.12.2005 – 13.03 - 13.03. 2007 present Construction price(euro/square meter) 270,00 300,00 Roof price (euro/ square meter) 17,00 17,00 Land price (euro/ square meter) 8,33 12,37 The source: Figures offered by RMGC

In addition to the above mentioned facilities (the share of the cost for the new home at and the construction of homes in the two new moving locations), the company created a number of new facilities among which we can identify 44 : Ensuring a job for at least one of the family members in the building phase of the project (the obligation is assumed in writing through the deed of conveyance and exchange); Assistance in searching of a new household in the area of 250 km around the project, for those not opting for a new home in Piatra Alba or Alba Iulia; Welfare and medical assistance for covering individual needs in the new location; Counseling for small savings, investments, banking operations, and for the development of small enterprises; Professional qualifications that will allow applying for jobs in the new locations and finding jobs in collaboration with the competent institutions; Assistance through completing the registration formalities with Electricity Company, with the police, fiscal administration, communal management, the territorial pension house, schools.

Quantitative and value aspects regarding property acquisition by RMGC during 2002-2006 The type of property acquired (constructions, lands, Residential Nonresidenti Years others) al The number of positions of acquired properties 59 4 The number of the families involved in the acquisition 49 procedure The number of the rightful owners-natural persons 114 5 2002 entering the acquisition procedure The US dollar value of the amount of money given per 2.000.000 16.000 total property The average statistical US dollar value of the amount of 17.544 3.200 money given to each rightful owner The number of positions of acquired properties 334 426 The number of the families involved in the acquisition 213 0 2003 procedure The number of the rightful owners-natural persons 656 470 entering the acquisition procedure

44 Remade according to the newspaper Roşia Montană Project from 27.09.2006, page 1. 79

The dollar value of the amount of money given per total 11.550.000 2.452.000 property The average statistical value in US dollars of the 17.606 5217 amount of money given to each rightful owner The number of positions of acquired properties 34 132 The number of the families involved in the acquisition 33 0 procedure The number of the rightful owners-natural persons 63 173 2004 entering the acquisition procedure The US dollar value of the amount of money given per 1.001.000 723.000 total property The average statistical US dollar value of the amount of 15.889 4.179 money given to each rightful owner The number of positions of acquired properties 167 466 The number of the families involved in the acquisition 145 0 procedure The number of the rightful owners-natural persons 334 321 2006 entering the acquisition procedure The US dollar value of the amount of money given per 19.100.000 4.300.000 total property The average statistic US dollar value of the amount of 57.186 13.396 money given to each rightful owner The number of positions of acquired properties 594 1028 The number of the families involved in the acquisition 440 procedure The number of the rightful owners-natural persons 1167 969 Total entering the acquisition procedure The US dollar value of the amount of money accorded 33.651.000 7.491.000 per total property The average statistical US dollar value of the amount of 27.056 6.498 money given to each rightful owner

The data represent an irregular, zigzagging evolution of the elements generating the operation of property acquisition, respectively their growth in the 2002-2003 period, the sudden decrease in 2004, the absence of the “phenomenon” in 2005 and its maximum intensity in the next year. As a result of the acquisition procedure all of the 440 families received on an average 93.505 dollars each, respectively 76.480 dollars for residential property and 17.025 dollars for non-residential property. The number of non residential properties that the company decided to acquire it is 947, at the present time having had acquired 594 properties; these shows the fact that the intention to acquire has been manifested in 62,7 % of cases. With the money they received, a part of the families opted for relocation, namely they moved to other localities where they acquired other households. This was the option of those families, in choosing a certain relocation place they probably had as arguments: the proximity to their children, the available jobs, better living conditions, etc. Concerning the relocation operation, we show in the 4.1.3 table the relocation destinations per county and the households for which the relocation represented foreign countries.

Table 4.1.3 The location and the number of households relocated in the period 2002-2006 The county Relocated households (number) Alba 181 Hunedoara 45 Arad 22 Cluj 17 Timiş 8 Bihor 3 Sibiu 3 Maramureş 2 Braşov 1 Caraş-Severin 1 Mureş 1 Sălaj 1 Satu Mare 1 Suceava 1 Foreign 8 countries Total 295

Given the facts, we can talk of a radial orientation of the relocation destinations, with an increased focus on the Alba (that holds the leading position), Hunedoara, Arad and Cluj counties. Excepting the counties of Timiş, Bihor, Sibiu and Maramureş, in the rest of the countrys represented in the graphic only one household was relocated. According to the structural aspects and the degree of land acquisition, the situation can be resumed in the following lines:

Table 4.1.4. The usable land surfaces on categories and their acquisition degree (square meters) % acquired Usage category Acquired Not acquired Total surface per total Arable land 155.689 86.653 242.342 64,24 Building land 69.655 45.204 114.859 60,64 Yard 235.054 176.615 411.669 57,10 Hay pasture 5.157.960 5.517.567 10.675.528 48,32

Garden 89.293 47.667 136.959 65,20 Garden in arable land 7.748 11.751 19.499 39,74 Non productive 5.187 2.564 7.751 66,92 Forest 640.869 624.492 1.265.361 50,65 Forest without deed 102.422 75.623 178.046 57,53 Pasture 15.569 4.996 20.565 75,70 Total 6.479.447 6.593.132 13.072.579 49,57

The table content reveals the fact that hay pastures are in first position regarding the degree of acquisition, the proportion being of 75, 7%. At the opposite end there are the gardens in arable land, in a proportion of 39, 74%. Related to the relocation strategy of the company there the following questions can be formulated: -it can be said that the population relocation was carried out conformingly with the strategy “earth for earth” recommended by the World Bank? To what extent do the locals still wish to continue their traditional way of living? -do the value equivalents offered by the company compensate for the doubts associated with the possibilities of relocation as independent producers or employees gaining from the project?

The answers to these questions can be affirmative if one considers the arguments related to the place of the relocation locations, a place that offers, to those who wish to continue their traditional way of life, the possibility to opt for the Piatra Alba location and, for those who wish to somewhat change the rural way of living with an urban one, to go to the Alba Iulia location. The compensation for the property sold to the RMGC company are above the real estate prices in the area, being considered one of the factors that contributed to the growth of land and property prices both in the area of direct impact and in the area of propagated impact. Still, the question related to the psychological effect of relocation or relocation remains, because the people, especially elderly, leave behind memories and social relations that can be renewed only with great difficulty. But everyday reality shows that population mobility has increased, and the population, especially young people, are heading towards other localities or foreign countries, where they can find better standard of living.

4.2. The building of the relocation infrastructure

Considering the character and the spatial growth of the project that will be developed, the persons whose property is located in the exploitation /safety perimeter will be evaluated and they will be compensated similarly, whether they choose relocation or choose to relocate. The persons that choose to move can use the compensation to purchase property, including land and a new house on a displacement site built by RMGC. At the same, time there is the possibility for these persons to build their own houses on one of the relocation sites. As a result of the selection process, as specified, two areas were chosen tol be proposed to the owners that opt for displacement.

- Piatra Alba located in the commune Rosia Montana, higher than Gura Rosie, where the public functionality of the local administration will be reconstituted. - Dealul Furcilor in the town Alba Iulia. The company will rebuild at its own expense the public infrastructure from the relocation area. For this purpose 45 : • access roads will be build towards the relocation sites or they will be modernized- the main roads will be paved and the secondary roads will be covered in gravel; • a school will be build (kindergarten, primary school, gymnasium) at Piatra Alba; • the buildings for the local authorities and for the public services now existing in Rosia Montana will be reconstructed (city hall, police department, post office, community center, medical clinic, marketplace); • the water, electricity, and sanitation will be supplied; • green spaces and parking lots will be arranged; • new churches will be build and graveyards locations will be offered.

The owners of the households affected by the exploitation perimeter that choose to relocate will have the freedom to choose between 8 types of houses ranging between 65 sm. and 149 sm in surface. For each of the 8 types of houses, three types of land space will be availabl,e and every type of house will be available with a minimum of finish, with the possibility for some additional finishes if the household that is being relocated accepts to pay for it. The affected, eligible households will also have the possibility to choose to build their own houses on a plot of land given by the RMGC on one of the relocation sites, thus personalizing the ambient in which those people want to live, according to their wishes and their financial means. The relocation sites will finally have, from an infrastructure point of view, all the characteristics of the existing dwelling places in advanced European countries. Modern infrastructure will combine with traditional architecture, offering civilized living conditions for the inhabitants of that area. The direct impact will be felt both throughout improving the existing infrastructure, through the new jobs that were created, as well as through the possibilities for investment created in the area as a result of the infrastructure to be created.

4.3. The construction of the mining infrastructure and its use after the project’s end

The mining infrastructure of RMGC will use approximately 1600 ha to build certain of some objectives which are in the administrative areas of the localities of Abrud, Roşia Montana, Câmpeni and Bucium. The investments made in the mining infrastructure will be in industrial processing and treatment areas open quarries for gold and silver ore, quarries for mining construction rock for rockfill, storage spaces for stripped plant soil, storage areas for hazardous/explosive waste, , storage surfaces for slag, sludge bed, modernizing access roads, modifying and creating connecting roads, creating exploitation roads, industrial and drinking water inlets and transportation, deviations of the electric lines, transformer stations, developing an internal telephone network, fixed and mobile. The location of the main objectives of the project are the following 46 :

45 Roşia Montană Project – Management of the social impact , vol. 1, pages 62-63. 46 Alba Project S.A. – Area town planning – Roşia Montană industrial area , pages 6-8. 83

- The plant for processing the ore and the cyanide treatment unit, are between Valea Săliştei and Valea Roşia Montană, - The Cetate and Cârnic quarries , which will ensure surface mining of ore, placed next to two slab storage areas and a storage area for depleted ore in the south east of the Cetate quarry, and a storage area for inert waste in the south of Carnic quarry. - The Jig and Orlea quarries , for extracting ore in surface quarries; - The system of Corna sludge bed, to be placed in Valea Cornei, south of the processing plant; - The rockfill quarries for terrasing and laying concrete which will be positioned in the area of the Valea Porcului (sand rock) and the location of Şula (andesite); - Four waste dumps of stripped plant soil placed at the west of Şulei quarry, south of the plant and at the south-east of the sludge bed dam. These will be used in a later stage for the ecological reconstruction works; - The dam and the sludge bed for acid water for the quarries and the Cetate waste dump for sterile rock; - The explosives warehouse, which will be adjacent to the access road to the sludge bed at 1 km south of the plant; - Collecting drain/deviation of water both for acid water and for clean conventional surface water, which do not come into contact with mining activities, placed around the quarries and of the sludge bed and in the north part of Roşia Valley. For completing the project it will be necessary to build short road sections to provide access to the processing plant and the Roşia Poieni mine. The access road to the plant will be on the left shore of Valea Roşiei from national road DN 74 A at Gura Roşiei. A section of the route overlaps with the existing railway line which provides ore transportation to Gura Roşiei. In order to have access to Roşia Poieni it is necessary to build a new county road DJ 107 I (Bucium Village), 6.65 km in length, to provide access to vehicles from the DN 74 national road. Both roads will be 10 m wide, and will be asphalted on approximately 80% in length 47 . Aside from those two main roads proper access of very heavy load motor vehicles from the quarries to the preparation plant, the sterile waste dump and to the sludge bed, it is necessary to build some internal transport roads , which will be covered by gravel. Separate roads will be built for light vehicles. The water supply will supply both the industrial water and the drinking water to meet the current needs in the industrial area. The supply network for industrial water covers the water intake from the Arieş River bed, the buffer reservoir, the pumping unit, and the water pipeline to the edge of the space it is being used in. A part of the untreated water brought from River Arieş will be made drinkable in a treatment unit placed in the processing plant for meeting the current needs in the industrial area. The sewer system performs both the channeling of industrial waste water and household waste water. . The acid water resulted from the percolation of rocks in the waste dump and mine water will be collected in a storage lake, from which it will be pumped to the neutralization station within the plant. After neutralization it will be emptied on the Corna and Roşia valley or will be used as industrial water in the ore processing plant. Waste water resulted from offices and other facilities ancillary to the processing plant (for instance, waste water coming from lavatories, kitchens and washing machines) shall be directed to a waste water treatment plant, located within the processing plant. The treated waste water

47 Roşia Montană Project – technological processes , vol 8. page 45. 84 shall be evacuated in compliance with approved practices and environmental protection standards in force. The power supply 48 shall be provided through the existent double circuit power lines of 110 kV from Zlatna to Roşia Poieni that cross the area proposed for exploitation, and which shall be redirected on an approximate total length of 7 km west of the processing plant, in order to avoid crossing transport roads and waste dumps. The power line shall be linked to a transformer station inside the plant, from which it shall be distributed at 20 kV through a network of aerial lines and surface cables. The Telecommunication networks are mainly meant to maintain, expand, or modernize the Romtelecom network in the industrial area. An optic fiber connection shall be extended from the current terminal at Gura Roşiei to the plant, to become the main means of communication for The Roşia Montana Project. A telephone system will ensure communication alongside walkie-talkies and mobile phones. A public telephony system will be operational having phones at strategically located points, at the plant, workshop and warehouse. The infrastructure impact on the area will be felt both during the construction period, when local enterprises will have the opportunity to capitalize their potential, using available workforce, as well as during the exploitation period (its maintenance is necessary). After the project finalization, part of the infrastructure created for the project necessities shall be closed down and used by the company or shall be integrated within the environment so as to avoid reducing its capacity to be used. Another part shall be handed over to local authorities or sold to other companies intending to develop business in the area. A few possible directions for the use of infrastructure created after the project closes are: • Access roads at the location, for which public or technical interest is expressed, shall be put at the disposal of the local population; • Power lines of low and medium voltage shall remain in place for the use of local population and possible enterprisers; • Running and industrial water supply systems, as well as the waste water treatment system, shall be remitted to local authorities, if requested. • Usable administration facilities and warehouses, as well as other infrastructure elements, shall be sold to natural or legal persons, or donated to local authorities. Obviously, the new project will have a strong impact on the environment following the surface exploitation of gold ores and the technological processing infrastructure, yet the environmental management proposed by the company and experienced with previously tried and tested at other mining areas, provides the opportunity for environmental remodeling after closing the mine, in order to minimize impact on the area. When closing the project, soil shall be stabilized, the soil layer shall be rebuilt to allow development of vegetation specific to the area, while the landscape architecture shall be improved, so that the environment will not be affected aesthetically, but rather constitute an attraction for local inhabitants and visitors.

4.4. The general development of the local infrastructure

Analyzing the elements of the human environment, the concusion is that the actual infrastructure is inappropriate from the point of view of capacities, of the degree of

48 Area Town Planning, page 67-68. 85 diversification, and conditions for use. This, in fact, represents an impediment to the general development of investments in the area, and to a proper standard of living. The project creates the necessary premises for a general development of the local and regional infrastructure, through the direct and indirect contribution of the RMGC Company. Considering that the development of the area is guided by the strategic development plan of every administrative unit 49 , a comparative analysis has been made, comparing the wishes of local communities regarding the development and the modernization of the infrastructure and the elements mentioned in the investments project of the RMGC Company. According to the strategic plans of the localities and the project financing requests, the following main directions of development can be drawn: -the development and the modernization of the water supply infrastructure; -the development of the electricity infrastructure, for the electrification of the households; -the development of the sewer infrastructure and of the solid waste collection; -the development of the road and railway infrastructure; -the development of the telecommunication, Internet, and cable television infrastructure. Analyzing the strategic development plans of the local communities from the immediate impact area, no conflicts emerged regarding general infrastructure development. Although for most strategies in the SWOT analysis the presence of gold and silver ore is presented as an opportunity, the possibilities offered by the RMGC’s investments are ignored, although the state of the infrastructure is mentioned by every public administration unit at weak points. The Company Roşia Montana Gold Corporation has established by project 50 a development of the infrastructure elements strictly oriented on the program of exploitation and processing of ore, respectively on the program of building the annex equipments and repair of the effects of the mine’s activities on surface. Partially these activities converge with the development plans of the administrative units from the immediate impact area, determining an infrastructure development that is managed by two avenues: direct and indirect. The direct avenue is determined by the direct investments in the modernization, restoration, and creation of communication networks, electric and transformer stations, complex systems of water supply, water evacuation and treatment stations, that, on the one hand are seen as desirable in the local development and, on the other hand, in the project investments, after the closure of the exploitation, are supposed to become the property of the local administration. The indirect avenue contributes to the development of the infrastructure through economic effects generated by the exploitation and the processing of ore, determining the creation of a generating chain on added value in the productive enterprises that sustain the exploitation mining activity (work safety equipment, instruments, spare parts) and in the service unitis ancillary to the main activities. These avenues will produce supplementary income for the local budgets. At the same time, education activities that RMGC plans to run, directly or through NGO financing, are expected to end up improving mentality and the orientation of decision factors towards accessing founds for infrastructure development.

49 Area Town Planning. 50 Rosia Montana Project – General information. 86

4.5. Jobs created and their social implications

The project’s evolution has an extremely positive effect on the degree of employment in the area. The present labour market context in the direct impact area proves the utility of the RMGC project, as being the only possible alternative for the absorption of the available existent work force. At the moment, the impact area is going through the worst period in terms of employment, caused by the recent closing of the two mines (Minvest and RoşiaMin), which resulted in the dismissal of a great number of employees, as below 51 : • 1167 in the 1997-2003 period; • 241 in 2004; • 73 in 2005; • 575 in 2006; • 700 in 2007 (the month of February). The protocols signed with the Local Council in Roşia Montană and Abrud mention that employment priority shall be given to locals for the new jobs created. As of the end of the first quarter of 2007, RMGC employees come from the following areas:

Table 4.5.1 Number of employees at RMGC in 2007 per county COUNTY NUMBER OF % EMPLOYEES Alba 424 89.7 Cluj 6 1.3 Hunedoara 22 4.6 Bucharest 8 1.7 Other counties 13 2.7 Total 473 100

As the biggest investment in the local community, RMGC represents the main source of employment for unemployed persons, representing an extraordinary employment opportunity, first of all for the inhabitants of the region. It is recorded that 90 % of jobs are taken by people from Alba County, and about 6% of jobs are occupied by persons from neighboring counties, and only 4 % are taken by people from Bucharest and other areas. Naturally the biggest part of employees (82 %) came from the direct impact area, that is: Rosia Montana (286), Abrud (73), Bucium (16), Campeni (8), Ciuruleasa (3), and Mogos (1). The specificities of mining also offers employment opportunities for unskilled and partially skilled workers who have difficulty finding a job in other areas. Apart from the jobs created in the field of mining proper ,the company also has other jobs specific to construction and maintenance activities: electricians, plumbers, carpenters, bricklayers, blacksmiths, welders, etc. A statistic of workforce according to the level of qualification shows the structure of jobs at RMGC and the quality of the workforce required in 2007 (Table 4.5.2).

Table 4.5.2

51 According to the Statistics supplied by the National Agency of Mining Regions . 87

The structure of jobs according to the required level of qualification at RMGC in 2007 QUALIFICATION NUMBER OF % LEVEL JOBS Secondary education 343 72.5 University education 130 27.5 Total 473 100

At present the the company needs mainly medium qualification workforce, around three quarters of jobs being of this nature, which proves that the company offers employment opportunities for inhabitants that lack higher qualifications. At the same time the company has a lot of concern for generating and developing the professional skills of inhabitants in the region, offering training courses or professional reconversion. Between 2006 and 2007, RMGC trained about 1390 people in different training courses or professional reconversion, offering financial incentives to the interested persons in completing their studies. The information offered by RMGC indicates that the number of employees in the project evolved between 1998-2006, according to the chart in Figure 4.5.1.

500 450 400 350 300 250 Angajaţi 200 150 100 50 0

8 0 1 4 0 99 00 00 1 1999 20 2 2002 2003 2 2005 2006

Figure 4.5.1 – The evolution of employees at RMGC in the period 1998-2006.

The Company offers motivating salaries in relation to the average income in the area, which will have positive social implications by providing the financial resources needed for a decent life. The average salary income at the company in the period 1999-2006 evolved according to the chart presented in Figure 4.5.2. This income was much above the level of the nominal salary average in the economy. The ascending trend of these can be noticed, and the variation in 2002 is probably due to the number of the temporarily employed specialist within the framework of the project whose salaries were higher.

1800 1600 1400 Monthly average 1200 salary at the 1000 Company 800 Monthly average 600 salary in economy 400 200 0

999 000 001 002 003 004 005 006 1 2 2 2 2 2 2 2

Figure 4.5.2. – The evolution of the monthly net average salary at RMGC in the period 1999-2006, in comparison with the net average salary in economy (RON).

According to the data supplied by the company, the net average salary for the period of the project will be of 3920 RON (approximately 1400 $). The National Committee of Prognostication estimates that, at the level of the national economy, by 2010 the annual growth rate of the average salary will be over 10%, and in the period of 2007-2013 it will be 8%, reaching in 2013 a net value of 1735 RON 52 . The company salary policy will continue to be generous, the net average income offered to the employees by the company will be two times higher than the value of the indicator at the national economical level. RMGC expects to offer 1200 jobs during the construction, and during the mining period 640 persons will be employed. Obviously, the project specificity requires certain skills, therefore RMGC envisions a permanent analysis of workforce available in the area against the company’s needs. When demand can be satisfied by the existing offer, those persons shall be hired directly, while persons interested in job offers, yet not having the needed skills, will be offered training courses, during which time they shall be remunerated above minimum wage, and shall have the company’s guarantee that they will be hired after finishing training courses. Beside the direct jobs mentioned, RMGC believes 5500 additional indirect jobs could be made available in related areas and other economic fields. The figure is debatable and exceeds the workforce locally available, though obviously any investment of such scope would generate jobs as a result of the upstream or downstream direct impact, and indirectly in other economic fields. A series of studies 53 maintain that the project development shall impact negatively on the area by loss of jobs in traditional activities like agriculture, farm animal raising, forestry, the wood processing industry. Those losses, the authors believe, are almost six times larger then salary income of RMGC employees. We do not agree, since at the date the study was conducted, in Roşia Montană, a single person was employed in agriculture, according to data provided by

52 www.cnp.ro – Anticipation for the average term 2007-2013, final spring form, 2007 53 Bran P. (coord.), Raportul comisiei din Academia de Studii Economice, Bucureşti privitor la probleme economice, financiare, sociale, de mediu şi de durabilitate ale proiectului minier Roşia Montană, http://www.academiaromana.ro/rosia_montana/doc_fin/raport_ase_final_2.doc , page 7. (Report of the Commission of Economic Studies Academy, Bucharest, on economic, financial, social, environmental and sustainability issues of the mining project Roşia Montan) 89 the Mining Area Agency, while over 60 % of the employees were mine workers, whose jobs, after the development of the RMGC project, not only will be kept, but also supplemented. At the same time, the salary income offered by RMGC is higher than the average income at the national economy level, including the mining industry, which is known to offer high salaries. The agricultural activities in the area in the majority of households are subsistence activities and are profitless, the input being larger than the output, therefore unable to generate the income indicated by authors of the above-mentioned study (as a matter of fact, profit should be taken into consideration, rather than income). Furthermore, not even the local inhabitants believe that agriculture could constitute an income alternative. In Bistra, where the agricultural potential is higher than in Roşia Montană, around 89 % of the population states that income from agriculture is insignificant 54 . The hope of the locals to find jobs at RMGC is shown by the number of job applications. In compliance with the data supplied by the company in the last two years, almost 1400 employment applications have been filed with the human resources department, of which 80% come from Abrud and Roşia Montană. We believe that the jobs created, through the salaries offered, have a strong social impact, ending the migration of the workforce, constituting at the same time an economic and social progress factor, in line with the requirements of sustainable development.

4.6. Protection of the historic and cultural heritage

In Romania, the majority of cultural heritage values, including the archaeological heritage and the historical monuments are regulated by a series of specific laws 55 . Expert documentation and work plans for the cultural heritage in the Roşia Montană area, have been drafted in observance with the stipulations of most important European Conventions concerning the protection of the cultural heritage 56 , as well as the stipulations of international regulations in the field of the cultural heritage protection 57 .

54 The strategic plan for the social and economical development of Bistra 2007-2013, page 15. 55 GO 43/2000 (supplemented by Law 378/2001 for the protection of the archaeological heritage and nominalization of sites of national interest, reviewed and supplemented by Law 462/2003, published in November 2003, as well as Law 258/2006); Law 182/2000 for the protection of mobile property of national cultural heritage, published in the Official Gazette no. 530 of October 27, 2000, part I; Law 422/2001 for the protection of Historical Monuments, reviewed and supplemented by Law 468/2003, as well as OMCC 2682/2003, OMCC 2684/2003 and GD 1430/2003, respectively Law 259/2006 for the protection of historical monuments; Law 5/2000, published in the Official Gazette no. 152 of 2000, for the endorsement of the Development Plan for National Territory (DPNT) and the list of rural areas and those comprising heritage values of national interest; Law 311/2003 regarding Museums and Collections; GD no. 1430/2003 which reviews Law 422/2001 for historical monuments; Order of Ministry of Culture and Cults OMCC 2682/2003 regarding the endorsement of Methodological Standards for codification and evidence of historical monuments, of the List of Historical Monuments, respectively the Order of the Ministry of Culture and Cults 2807/2003 regarding the Methodological Standards for codification and evidence of historical monuments; Order of the Ministry of Culture and Cults OMCC 2392/2004 regarding standards and procedures in archaeology. 56 The Convention for the Protection of the Architectural Heritage of Europe (1985), known as the Granada Convention; the European Convention on the Protection of the Archaeological Heritage (1992), known as the La Valletta Convention or the Malta Convention; The European Landscape Convention (2000), known as the Florence Convention. 57 UNESCO recommendations regarding international principles applicable to archaeological research (1956); United Nations Convention for the Protection of the World Cultural and Natural Heritage (1972); ICOMOS Charter for the Protection and Management of the Archaeological Heritage (1990).

The most important heritage category within the Historical Centre area, the site, is represented by the archaeological site Alburnus Maior – Roşia Montană (code L.M.I. 2004: AB- I-s-A-00065) to which is added the Historic Centre of the locality (code L.M.I. 2004: AB-II-s-B- 00270). The monuments are mostly represented and they include: 41 buildings, respectively two churches and 39 households (code L.M.I. 2004: AB-II-s-B-00269, and from AB-II-m-B-00271 to AB-II-m-B-00311); the six elements of the archaeological site Roşia Montană, identified as historical monuments, respectively the Roman settlement of Alburnus Maior, Orlea Area, the Roman Mining Exploitation from Alburnus Maior, Orlea Massif, the Roman Vestiges from Alburnus Maior, Carpeni Area, the Roman Funerary Precinct in the “Hop-Găuri” Area and the “Cătălina-Monuleşti” Gallery in the protected area of the local historical centre (code L.M.I. 2004 from AB-I-m-A-00065.01 to AB-I-m-A-00065.05) and the Roman galleries in the Cârnic Massif, point Piatra Corbului (code L.M.I. AB-I-s-A-20329).

A. Implementation of the archeological discharge procedure During 2001-2006 ample preventive archaeological research hast taken place at Roşia Montană, while archaeological discharge or necessary measures for the preservation and protection of certain areas 58 have been achieved based on their results. The protected area of the Historical Centre is delimited within the General Town Planning of 2002, yet such delimited territory does not entirely comprise the concentration area of heritage values, this detail pending resolution with the drafting of The Area Town Planning for the Protected Area Historical Centre Roşia Montană. Research in the Historical Centre Roşia Montană did not constitute a priority for the archaeological programme of 2001-2006, since this perimeter shall not be directly affected by the future development of the mining project, being designated as protected area. Regarding the field ARHITECTURE there are targeted: Nominalization and implementation of the historical centre as protected area, including 35 buildings historical monuments and 3 churches; Drafting a comprehensive inventory of the buildings historical monuments and comprehensive studies regarding the history of locality and its cultural environment; drafting the Area Town Planning for the Protected Area Historical Centre Roşia Montană; Maintenance works for a series of buildings (including historical monuments) within the Protected Area Historical Centre Roşia Montană; codification within the List of Historical Monuments (2004) of the Carpeni and Piatra Corbului areas, as well as the Cătălina Monuleşti gallery; 11 historical monument buildings have been proposed for preservation and the documentation for the conservation projects are undergoing final stage. Considering the importance of the investigated networks, the preservation works shall be comprehensive, expensive, while a maintenance cost, not to be neglected on long term, must be added. For instance, although the complex of interconnected mining networks in the central south part of the Cârnic Massif represent a scenic complex, is must be noted that same type of mining works exist in several other points, therefore certain repetitiveness within this mining

58 In compliance with the stipulations of Law 422/2001, supplemented by Law 258/2006 and Law 259/2006, the archaeological discharge is the procedure which confirms that a field where archaeological heritage has been recorded can be returned to customary human activities, while the investor is responsible to finance “the establishment, through an investment feasibility study and technical project, of measures which should be further detailed and the necessary funds for the preventive research or the archaeological supervision, upon the case, and the protection of the archaeological heritage, or, upon the case, the archaeological discharge of the area affected by works and the implementation of such measures.”

91 region can be noticed. A great part of such type of mining works can be encountered in sectors that shall be protected from the mining project impact, as for instance the areas Coş, Păru- Carpeni and Piatra Corbului, all of them exhibiting unique elements which support the scientific decision for in situ preservation. Within this context, is it compulsory to pursue the restoration on the whole of such a mining complex, considering that high costs of such action, as well as costs ensuing from the maintenance and use stage as tourism and cultural resource. For the galleries, in order to establish a site museum in the future, by conservation and preservation of certain mining vestiges in situ , remarkable areas where various types of mining works specific to ancient mines of Roşia Montană exist should be selected. The ancient mining network Cătălina Monuleşti located in the Coş Massif seems to be best suited for such a purpose. A reconstruction plan can be envisioned, by the construction of underground copies of representative mining structures, already researched, and in a poor state of preservation not allowing for a coherent and feasible plan for their inclusion in a public tourist circuit. Thus, the authentic image of mining remnants within the sectors of Coş, Carpeni and Piatra Corbului could be completed interactively in order to be exploitable. During the construction stage of the project (2007-2009) permanent archaeological supervision shall be ensured by an independent archeological team, thus avoiding irreversible loss of archeological heritage (data which could complete the already outlined image on the history and significance of archaeological finds from Roşia Montană), although the areas under discussion have already been archeologically discharged during 2001-2005. During 2007 – 2012 further archeological field research is scheduled within areas with known archeological potential, respectively – the Orlea Massif area, for both ground level, as well as underground archeological potential. The Study of Prerequisite Conditions for the Cultural Heritage states that further archaeological field research shall be carried in the Orlea Massif area, respectively within an area of supposed or known archaeological potential. Underground archeological research in the Orlea Massif was initiated in 2004 and was coordinated by Beatrice Cauuet PhD, researcher with the Le Mirail Toulouse University. On this occasion, a chamber was discovered with a hydraulic wheel, with a hydraulic system used for the evacuation of underground water. The complex, uncovered in the Păru Carpeni sector, was dated to the Roman period and is the object of ample research and special conservation measurements in situ , the objective being unaffected by the construction of the future quarry at Orlea. At Orlea, comprehensive archaeological ground level research combined with underground research in the Orlea – Ţarina sector are proposed to start, according to the EIM for the interval 2007- probably 2012. The situation is possible since the quarry for the Orlea Massif will only be built in the second half of the plan development period. Work plans does not involve the destruction of any historical monument whatsoever. The measures taken for the HERITAGE part address: Conservation, restoration, inventory, and recording in a data base of mobile archaeological heritage objects uncovered during preventive archeological excavations, a steady process initiated in 2001 and further developing – over 7.500 items restored and recorded for the collection of the future museum at Roşia Montană - deposited in transitional storage from Roşia Montană or under research with the institutions performing the archaeological research; Comprehensive mining to reopen the Cătălina – Monuleşti Gallery for public access (over 300 m in length); primary restoration of the funerary enclosure from Tău Găuri, and preparing the expert documentation for in situ preservation (approved by the National Commission for Historical Monuments in 2004); the primary conservation of the Roman hydraulic system in the mining sector at Păru Carpeni; development and implementation of a cultural heritage Management Plan having as objectives the

92 identification, research, conservation, capitalization, and monitoring of cultural heritage values, in compliance with legal regulations 59 ; making a tri-dimensional reconstruction model for the Roman galleries uncovered at Roşia Montană.

B. Historic Monuments and the Protected Area

The permit for the establishment of the Roşia Montană Historic Centre Protected Area was issued by the Ministry of Culture and Religious Affairs in 2002 (permits no. 61/14.02.2002 and no. 178/20.06.2002), as part of the procedure for the approval of the urban planning documentation. Based on these permits, the Ministry of Culture and Religious Affairs requested the development of the Zonal Urbanism Plan for the Historic Centre of Roşia Montană. Out of the 41 historic buildings in Roşia Montană, thirty-five (35) are located inside the Roşia Montană Historic Centre Protected Area, which is intended to cover a surface of over 135 ha and to comprise around 300 buildings. Thus, this area will include the architectural values within this locality (restored and redeveloped), organized as a mining museum, with exhibitions of geology, archaeology, ethnography (with an outdoor section), industrial heritage and an important underground section located around the Cătălina Monuleşti gallery (classified as historic monument). In this area, the company will intend to promote the development of traditional tourism (boarding houses, small restaurants). However, the future area of industrial development will comprise 6 historic buildings and 4 archaeological sites – the Roman Dwelling of Alburnus Maior, the Orlea Area (code LMI AB-I- m-A-00065.01), the Roman Excavation of Alburnus Maior, the Orlea Massif (AB-I-m-A- 00065.02), the Roman Vestiges from Alburnus Maior, the Carpeni Area (AB-I-m-A-00065.03), the Roman Funeral Enclosure from the “Hop-Găuri” Area (AB-I-m-A-00065.04). Specific measures concerning the historic monuments and the archaeological sites within the industrial development area are described in the Environmental Impact Assessment Study as well 60 . Town-planning studies and specialized studies conducted for the purpose of establishing the boundaries of the protected areas within the Roşia Montană commune are currently pending approval – in accordance with legal provisions – by the competent institutions and committees in this area of interest. Please note that none of the historic houses located in the perimeter of the project proposed by RMGC will be negatively impacted; on the contrary, these houses will be included in a complex rehabilitation and reconstruction program 61 . This program is mandatory, regardless of the implementation of the mining project, if we want to prevent these houses from collapsing, because of their current advanced state of degradation. In this connection, the documents necessary for the start-up of reconstruction works for 11 historic houses situated in the Roşia Montană Square Area are currently in the final stage of elaboration.

59 See Plan M – Management Plan for the Cultural Heritage, part I – Management Plan for the Archaeological Plan in Roşia Montană area, vol. 32; part II – Management Plan for the Historical Monuments and Protected Areas of Roşia Montană; part III – Management Plan for the Cultural Heritage, vol. 33). 60 vol. 32-33, The M Plan – Cultural Heritage Management Plan, Part I – Management Plan for the Cultural Heritage of Roşia Montană, p. 75-76 and Part II - Management Plan for the Historic Monuments and Protected Areas from Roşia Montană, p. 74-91. 61 See Environmental Impact Assessment Study (vol. 33), and Cultural Heritage Management Plan, Part II - Management Plan for the Historic Monuments and Protected Areas from Roşia Montană, p. 74-91, respectively 93

One of the main objectives of the Management Plan for the Cultural Heritage Values is the development of a project for the realization of the future museum dedicated to the history of mining in the Apuseni Mountains area, from the oldest times to the present day; there is obviously a significant part related to the redevelopment of historic mining galleries. For the organization of a site museum, with the conservation and preservation of mining vestiges in situ, specialists considered it much more appropriate to select certain remarkable areas with different types of mining works, specific to the ancient mines from Roşia Montană. Moreover, a reconstruction program is taken into account, through the construction of underground copies (replica) of representative mining structures, which have been investigated and which are in a precarious state of conservation that does not allow the elaboration of a coherent and sustainable program for their inclusion into a public visiting circuit. In the future archaeological museum that will be built in Roşia Montană, all collections of archaeological furniture and major site information - historic, archaeological, and ethnological will be found. Within this public building, a department will be dedicated to the history of mining. In this area, one will be able to display all the information related to ancient mining activity, but also to the modern and recent one. For example, one will be able to exhibit the ancient objects discovered during excavations in different mining networks, wooden lamps, tools and installations, such as hydraulic wheels, timbering, wooden ladders, draining channels, as well as the modern wooden rails and shunt switches. Equally, inside the museum, one will be able to build replicas showing ancient timbering and wooden suspended bridges, as well as parts of modern galleries with timbering, especially the ancient water draining system operated by hydraulic wheels. In one section of the museum, the tridimensional reconstruction of one part of the ancient mining works from Cârnic will be presented. The exhibition showing mining practices from the past will have to be completed by a series of mock-ups retracing certain mining activities, such as fire-setting, ore preparation and treatment, metallurgical activities, and so on. The funds the company is going to make available over the following years – in the context of the mining project implementation – for research, conservation, rehabilitation, redevelopment and maintenance work of the historic galleries from the Roşia Montană area amount to: USD 10,727,000 The budget is structured into three key components: research, conservation and rehabilitation, planned for the period 2007 - 2022 62 . Thus, the company has assumed the conclusions of the studies and research carried out by the mining archaeology specialists since 1999 to date. It must be noted that the vestiges located in the massifs of Văidoaia (remains of a surface excavation) and Lety (Cătălina Monuleşti gallery) will not be impacted by the development of the Roşia Montană project; however, the company will ensure the financial resources for their investigation and conservation. As concerns the vestiges from the Orlea – Ţarina area, the company will make available the resources necessary for their preliminary assessment and investigation during 2007 – 2012. Consequently, mining installations such as the hydraulic wheels from Păru Carpeni and Cătălina Monuleşti areas will also be preserved, both as restored original pieces, and as reconstructions of the installations in question, at a scale of 1:1.

62 See Environmental Impact Assessment Study , vol. 31, Management Plan for the Archaeological Heritage from Roşia Montană Area p. 78-79 94

C. Conservation and Rehabilitation Activities of the Historic Buildings and of the Roşia Montană Historic Centre Protected Area The RMGC Company currently detains 14 historic buildings. They have been acquired according to legal procedures set forth by Law no. 422/2001, the buildings being, at the acquisition date, in different states of conservation; this fact was recorded both in the sales contract, and in the various images taken since their acquisition. On the other hand, the Roşia Montană Historic Centre Protected Area must be mentioned. This area will have a surface of over 135 ha and will include the architectural valuables within this locality (rehabilitated and redeveloped), organized as a mining museum, with exhibitions of geology, archaeology, ethnography (with an outdoor section), industrial heritage and an important underground section situated around Cătălina Monuleşti gallery. In this area, the company will intend to promote the development of traditional tourism (boarding houses, small restaurants). In the Eastern and South-Eastern part of the old centre, there are the historic lakes: Tăul Mare, Tăul Brazi and Tăul Anghel. In this area, modern, leisure tourism may be developed. However, all proposals submitted by the company to this effect must be approved and supported by the local community, as well as by the authorities. The approximately 300 houses within this perimeter represent a very important component of this protected area. According to the Zonal Urbanism Plan for the Roşia Montană Historic Centre Protected Area, there will be different grades of protection of the built architectural heritage. Thus, a significant area will be designated for living, as well as areas where activities complementary to dwelling will be accepted, but where any industrial activity or any activity that could have a negative impact on this protected area will be prohibited. The exploitation planned by RMGC represents a potential impact. The recommencement of mining will require an in-depth assessment of its environmental impact, including the impact on cultural heritage components. The exploitation plan, finalized only after the completion of the environmental impact assessment, will have to be adapted by the company according to the results of this assessment, so that it should not have a negative and irreversible impact on the cultural heritage represented by historic monuments and on the Roşia Montană Historic Centre Protected Area. The company wishes to protect and to promote all these things, and for this effect, special measures will be taken both within the Roşia Montană Historic Centre Protected Area (rehabilitation – consolidation – conservation), and within the industrial perimeter (special blast techniques, establishment of buffer areas between the 2 perimeters, on-going monitoring of vibrations and blast adjustment according to the speed of propagation of shock waves, and so on). The funds the company is going to make available over the following years - in the context of its project implementation – for conservation, rehabilitation and maintenance works in the Roşia Montană Historic Centre Protected Area, as well as for the historic buildings located outside its territory amount to: USD 3,385,000.

D. Prospects for the development of the tourist potential starting with the cultural patrimony

Note that there are also representative features for the cultural landscape derived from the archaeological patrimony constituents: a very well conserved circular funeral monument is to be found in the area Găuri Pond; two public edifices made of stone bound with mortar and equipped with a hypocaustum installation were investigated in the area Dealul Carpeni, a funeral area and possibly sacred, all part of a coherently preserved archaeological assembly; most of the galleries where the famous wax tablets were found in the 18 th to the 19 th century are located in the Historic Centre Area; the best known gallery is Cătălina Monuleşti, where a large number of wax tablets were found, as well as an ancient mining system, also equipped with a draining system, very likely to comprise a hydraulic wheel system. Within the same area is located the Văidoaia Massif, where traces of ancient surface mining may be observed.

The five necropolises and funeral areas archaeologically delimited so far, located in the areas Taul Corna, Hop-Găuri, Carpeni, Valea Nanului, Ţarina, Jig-Piciorag and Pârâul Porcului (Taul Secuilor, are significant witnesses to the dynamic, diversity and increased number of the ancient population of Alburnus Maior . They are part of the far wider area of funeral incineration necropolis from Roman age, in several provinces of the Roman Empire, in the Danube and Balkan area.

The most important discoveries – according to specialists in charge of the research – and that meet the prerequisites for in situ preservation are: Roman funeral areasin Găuri Pond; Roman dwelling (including a funeral area and a possibly sacred area) on Carpeni Hill; ancient mining exploitation in the Piatra Corbului area (SE slope of Cârnic); the Roman hydraulic system in the Păru-Carpeni mining sector; archaeological vestiges in the Roşia Montană Historic Centre, including the Cătălina Monuleşti gallery (where a wooden hydraulic system from the Roman age was found, as well as the discovery - in the 19 th century- of a major wax tablet series) and the ancient surface exploitation in the Văidoaia area.

Taking into account the current state of preservation of the archaeological vestiges, the results of research in 2000-2006, the following priority directions need to be considered in an overall approach of the possibility to use the archaeological resources patrimony in order to develop the tourist potential: building a mining museum; historic monument edifices; Roşia Montană Historic Centre Protected Area and landscape elements in the pond area.

In the 70s, the massive migration of population led to the abandonment of several buildings: churches in the Historic Centre, Casina, the summer garden, a large part of the commercial spaces in the Market. As a consequence, intervention works on the building fund become of major importance for the rescue of the Roşia Montană Historic Centre and for the future possible exploitation of its tourist potential.

In what regards Piatra Corbului and Piatra Despicată, they fall, according to Law 5/ 2000 of March 6 th , 2000, under the section titled Protected Natural Areas of National Interest and Natural Monuments, paragraphs 2.8 (Piatra Despicată) and 2.83 (Piatra Corbului).

At the same time, as a result of the archaeological research carried out at Roşia Montană, through the Alburnus Maior National Research Programme, funded according to the legal

96 provisions by RMGC, the Piatra Corbului area was classified as historic monument, Roman Galleries in the Cârnic Massif respectively, “Piatra Corbului” area (code LMI AB-I-s-A-20329) (according to Monitorul Oficial No. 646 bis, of 16.07.2004, Alba County, position 146).

In order to implement the mining project by RMGC ( ) for the two nature monuments, the forecasts are the following: Piatra Despicată is an andesite block, weighing approximately 2 tons. In 2002, the Commission for the Protection of Nature Monuments of the Romanian Academy endorsed its transfer to a different location that shall not bear the consequences of future exploitation. As a result, Piatra Despicată shall be transferred to a location authorised by the Romanian Academy and the Ministry of Culture and Religions, by employing perfectly ordinary technical means, in terms of overall size, under specialised coordination and surveillance.

Piatra Corbului - In the project proposed by RMGC, Piatra Corbului shall not be affected, as it is placed outside the future Cârnic quarry. All technical measures shall be taken to minimise the impact during the operative stages of exploitation near the mentioned area, so as its integrity won't undergo any effects, as the monument of nature is to be preserved under its actual conditions.

In what regards another defining factor of the Roşia Montană landscape, the ponds respectively, we need to point out that only one of them, Taul Cornei respectively, is to undergo the effects of implementing the mining project. All other ponds shall be maintained: Tăul Mare, Tăul Anghel and Tăul Brazi respectively shall be part of the tourist development plans established for the Roşia Montană Historic Centre Protected Area, Tăul Găuri is included in the protection area of the Roman funeral prescincts to be restored in situ , and Tăul Ţarina, Tăul Secuilor and Tăul Ţapului shall not be affected either.

E. Management plans related to the cultural patrimony in the Roşia Montană area

Taking into account the significance of the cultural patrimony at Roşia Montană and the legal provisions in force, S.C. Roşia Montană Gold Corporation S.A. assigned a budget of over 10 million USD to patrimony research during 2001-2007. Furthermore, taking into consideration the research results, the specialists’ opinions and the resolutions of the competent bodies, the budged provided by the company for the research, preservation and restoration of the cultural patrimony of Roşia Montană in the years to come, under the circumstances of implementing the mining project, exceeds 25 million USD, as it was made public in the Environment Impact Survey, in May 2006 63 .

F. Critical positions related to the RMGC Mining Project

Note the position expressed by the Romanian Academy, the highest scientific forum in Romania, by a series of statement made during 2003-2006, in reference to aspects related to the archaeological research at Roşia Montană, and on the archaeological and cultural patrimony in the area: serious endangering of the Alburnus Maior archaeological area, of exceptional historical and cultural value, with unique features, endangering the Roman Galleries, the project

63 see the Report to the Environment Impact Survey, vol. 32, Management Plan for the archaeological patrimony in the Roşia Montană area, p. 78-79 97 is in contradiction to the World Cultural and Natural Heritage Convention, the procedure to issue the archaeological licenses – the ratio between the investigated area and the released area.

For details on the preventive mining archaeology research at Roşia Montană and the results to the present day, as well as provided methods to capitalize the discoveries, please see the Report of the Environment Impact Survey for the Roşia Montană Project 64 .

4.7. Impact of the R.M.G.C. project budgets of local authorities

Terminology 65 Ä budget – document providing and endorsing on a yearly basis the income and expenses, or, as the case may be, only the expenses, depending n the funding system of the public institutions; Ä local budgets – regional financial plans (drawn up at the village, town, city, county level) to fund actions of local interest Ä duty – mandatory payment with no obligations on the part of the receiver, and non- refundable, carried out by the public administration in order to meet necessities of general interest; Ä tax – amount paid usually by a natural person or legal entity for services provided to it by an economic agent, public institution, or public service; Ä budgetary incomes – financial resources owed to the state budget, social benefit budget, special funds budget, independent public institutions budget, based on legal provisions, comprised of duties, taxes, contributions and other payments (such as the price of goods and services provided); Ä public funds – amounts assigned by the state budget, state social insurance budget, special funds budget, independent public institutions budget, etc.; Ä budgetary expenses – amounts authorised by the state budget, state social benefits budget, special funds budget, independent public institutions budget provided within the limits an according to the purposes established by the respective budgets (Law no. 500/2002 with regards to public finances);

Town Halls and Local Councils act as local public administration authorities. In this capacity, they manage financial resources and goods of public or private property of villages, towns and counties. Their role is to manage and settle public issues in villages and towns where they carry out their activity, on the grounds that they are the authorities closest to the citizen.

In order to accomplish the mentioned objective, there is need for financial resources with estimation in terms of constituency and use methods are accomplished through the budget.

The local budget is the act where there are recorded the income and expenses of local communities during one year. It represents a tool to plan and manage the financial activities of the territorial administrative units and reflect the local administration income and expenses flow.

64 Survey on the initial condition on the cultural patrimony within the Report on the Environment Impact Survey, section 5.5.; old mining works at Roşia Montană (pg. 80-81, 85-92, 96-97) and Annex I – Archaeological Record Sheets of the sites identified at Roşia Montană, site sheets no. 4 and no. 9. 65 Provisions of Law 500/ 2002 with regards to public finance, Official Gazette no. 597, of 17.08.2002, were taken into account in defining the terms. 98

Local budgets of the territorial-administrative units, as public financial plans with executory title, provide the social-economic development within a balanced frame and quantify the financial resources and expenses funded from it, aiming for a balance throughout the year. Resources are mobilised and reassigned, through local budgets, depending on the tasks assigned to each territorial-administrative unit (social-cultural activities, maintenance and functioning expenses, objectives and economic actions of local interest, etc.).

Locale authorities have the capacity to efficiently mobilise and manage the resources, establish priorities, levels and criteria for the production and distribution of public goods and services, closer to the needs and standards of the community which they are directly in charge of and in permanent contact with.

RMGC contribution to the development of the budgetary funds of Roşia Montană town are, on income sources, as follows:

Lei 473384 500000 458507 450000 401385 400000 382585 350000 330509 294295 304898 300000 277237 250000 200000 150000 86924 100000 60032 36770 37325 50000 2960 0 2000 2001 2002 2003 2004 2005 2006 Anii

Prinaria Rosia Montana RMGC

Figure 4.7.1 – Comparison between the tax on buildings received by the Roşia Montană budget and the tax on buildings paid in by RMGC

RMGC contribution to develop revenues coming from the tax on buildings is preponderant. Therefore, during 2002-2006 the share of the mentioned tax in the total of the budgetary debts of the given nature, recorded the following values: 69,06 %, 94,20 %, 96,86 %, 95,32 %, 92,25 %.

Lei 35000 30556 30000

25000 21300 19218 20000 17180 15114 13112 15000 11863 9739 10000 8302 3912 5000 3008 64 809 0 2000 2001 2002 2003 2004 2005 2006 Anii

Prinaria Rosia Montana RMGC

Figure 4.7.2 - Comparison between the tax on land property received by the Roşia Montană budget and the tax on buildings paid in by RMGC

The situation is also similar for the tax on land, with an increasing evolution noted for this tax and the large share of the RMGC contribution in total. Tax on means of transportation registered an increasing evolution by 2005, it holds a lower share in the total of such income of Roşia Montană, but is significant enough: 19,42 % in 2004, 24,09 % in 2005 and 20,22 % in 2006. The aforementioned aspect is highlighted in the chart bellow:

Lei 18000 16604 15930 16000 14827 13891 14000 11780 12000 10000 8802 8000 6000 3838 3358 4000 3206 2880

2000 335 714 580 448 0 2000 2001 2002 2003 2004 2005 2006 Anii

Prinaria Rosia Montana RMGC

Figure 4.7.3 - Tax on transport means cashed in by the Roşia Montană budget and the one paid in by RMGC

Income from concessions and rentals coming from RMGC and their total to the local budget of Roşia Montană are as highlighted in the chart bellow:

100

Lei 120000 99620 100000 91900 87100 89712 77754 80000 67653 68426 64171 60000 55590 44653 40000

16637 20000 10341 1034 0 2000 2001 2002 2003 2004 2005 2006 Anii

Prinaria Rosia Montana RMGC

Figure 4.7.4 - Income from concessions and rentals cashed in by the Roşia Montană budget and the one paid in by RMGC

This category of budgetary income is also developed mostly as a result of the contribution of the company, representing, in 2004, 76,27% of the total income from concessions and rentals, and in 2006 78,05%. Centralized, the parallel between the destination and the provenience of the local tax and duties is described in table 4.7.1.

Table 4.7.1.

Taxes and duties cashed into the local budget of Roşia Montană and paid in by RMGC Name of the budgetary income Specific Other duties Tax on Income from Year Tax on Tax on TOTAL % ations and taxes on transport concessions buildings lands property means and rentals - 64 34.022 335 - 64,36% 2000 RMGC 34.421

RM 36.770 3.008 153 3.206 10.341 53.478 2.960 - 1.034 714 1.034 7,97% 2001 RMGC 5.742

RM 37.325 3.912 318 13.891 16.637 72.083 60.032 809 - 580 44.653 65,64% 2002 RMGC 106.074

RM 86.924 9.739 550 8.802 55.590 161.605 277.237 8.302 - 448 67.653 86,61% 2003 RMGC 353.640

RM 294.295 13.112 2.008 11.780 87.100 408.295 458.507 11.863 - 2.880 68.426 90,49% 2004 RMGC 541.676

RM 473.384 19.218 1.450 14.827 89.712 598.591 382.585 15.114 - 3.838 64.171 87,62% 2005 RMGC 465.708

101

RM 401.385 21.300 1.008 15.930 91.900 531.523 304.898 17.180 - 3.358 77.7 54 84,34% 2006 RMGC 403.190

RM 330.509 30.556 786 16.604 99.620 478.075 Source: Roşia Montană Town Hall Budget RM – Roşia Montană

The data presented in the table indicates the substantial contribution of RMGC to the development of the local income budget of, of over 90, 49 % in 2004, of 87, 62 % in 2005 and 84,34 % in 2006. In comparison to tax and duties like the aforementioned, the value of the income constituting the budget of Abrud are in Table 4.7.2.

Table 4.7.2.

Taxes and duties cashed into the local budget of Abrud and paid in by RMGC Name of the budgetary income Income from Year Specifications Tax on TOTAL % Tax on lands concessions buildings and rentals RMGC 4.247 128 - 4.375 1,78% 2002 Abrud 216.868 28.922 - 245.790 RMGC 53.922 3.109 - 57.03 1 23,38% 2003 Abrud 203.185 40.718 - 243.903 RMGC 56.895 7.863 - 64.758 16,84% 2004 Abrud 316.666 67.965 - 384.631 RMGC 12.598 1.713 - 14.311 4,92% 2005 Abrud 220.543 70.183 - 290.726 RMGC 13.256 10.958 22.22 4 46.438 12,22% 2006 Abrud 238.429 76.375 65.259 380.063

Please note in Table 4.7.2. the significant share held by RMGC for taxes and duties specified in the table for the local budget of Abrud, especially for 2003 and 2004, and as of 2006, RMGC also contributes with income from concessions and rentals, which represents again an increase in the contribution of the company to the mentioned local budget. As of 2005, RMGC contributed to constitute the income sources of Bucium , which is presented in the chart bellow:

102

300 272 250 244

200

150

100

50 17 36 0 2005 2006

Impozit pe cladiri Impozit pe terenuri

Figure 4.7.5 - RMGC contribution to income sources for Bucium

The structure of the income with which RMGC contributed to the local budget of Bucium is formed out of tax on buildings and tax on lands.

RMGC due and paid tax on land as of 2003, into the local budget of Alba Iulia , in the amounts indicated below:

2500 2121 2072 2000 1532 1500

1000 550 500

0 2003 2004 2005 2006

Figure 4.7. 6 – Evolution of the tax on land paid by RMGC into the local budget of Alba Iulia - lei

According to the chart data, the tax on land with which the company contributed to the local budget of Alba Iulia recorded an increasing trend during 2003- 2005. The analysis presented points out the following: RMGC contributed to the constituency of the local income budgets with the following categories of taxes and duties: tax on buildings, tax on lands, income from concessions and rental, taxes on means of transportation, other taxes on ownership; Ä ; Ä There are several addressees (local budgets) for the taxes and duties paid by the company, the towns Roşia Montană, Abrud, Bucium, Alba Iulia respectively;

103

Ä The company shows flexibility in its activity, which generates the possibility to adapt to certain circumstances and to get involved in the life of the local community.

4.8. Impact of the RMGC project on the state consolidated budget

Terminology 66 ð General consolidated budget – the ensemble of the budgets, components of the budgetary system, aggregated and consolidated to form a totality (Law no. 500/2002 with regards to public finances. The structure of the general consolidated budget is formed of: public national budget (state budget, social benefits budget, local budget), special funds budget (single national fund for social benefits and health benefits, unemployment insurance benefits) etc. ð contribution - compulsory contribution of part of the income of natural and legal persons, with or without the possibility of a counter-conscription (Law no. 500/2002 with regards to public finances) ð consolidation – operation to prevent the transfer of amounts between budget that are part of the general consolidated budget, so as to avoid their double registration (Law no. 500/2002 with regards to public finances);

The economic activity of RMGC S.A. generates income for the state consolidated budget. The analysis shall focus mainly on the state budget structure and on the structure of the state social benefits for 1997 – 2006, as well as the perspective for the actual exploitation period. The accomplishment of the state consolidated budget, as well as the state social benefits generate a possibility for the state to accomplish economic, social, environment actions, and other such. Thus, the indirect impact of the project in the area can be analysed and presented. Among the income categories representing funding sources for the state budget, we may find: - salary income tax representing tax income from the salary income beneficiaries, calculated and withheld on source, by the income payers. It is established by applying the 16% quota to the calculation base established as difference between net income from salaries (established as difference between gross income and the compulsory contributions for each month) and the following factors: personal deduction granted for the respective month; trade union subscription paid for the respective month; contribution to the optional retirement funds, without exceeding the amount of Euro 200, at the level of the year ; - salary income – all income in cash and / in kind gained by a natural person carrying out an activity, on the basis of an individual labour agreement or of a special statue provided by the law, regardless of the period considered, name of the income or procedure to grant the income, including indemnities for temporary incapacity to work 67 .

66 Provisions of Law 500/ 2002 with regards to public finance, Official Gazette no. 597, of 17.08.2002, were taken into account in defining the terms 67 Official Gazette no. 927 of 23.12.2003 , Law 571/2003 with regards to the Fiscal Code, art. 55 with subsequent amendments and completions. 104

- Value-added tax is an indirect tax owed to the state budget. It is a single tax, levied fractionally on the added value, represented by the sale and the purchase corresponding to the same stage of the economic circuit. - Taxes on income acquired in Romania by non-residents is applied to gross taxable income acquired in Romania. The following are part of the category: a) dividends from a Romanian legal entity; b) interest, royalty commissions from a resident or non-resident with main office registered in Romania, should the royalty represent an expense of the main office; j) income representing remuneration received by non-residents acting as administrator, founder or member of the administration board of a Romanian legal entity, etc. - royalty 68 - payment of any sort made for the use of assignment of any copyright on a literary, artistic or scientific work, including on cinematographic films and software, any patent, trade mark, drawing or design, plan, secret formula or production procedure, or for any information related to experience in the industrial, commercial or scientific field; payments for using or right to use industrial, commercial or scientific equipment.

RMGC contribution to constitute the income sources of the state budget is presented in Table 4.8.1.

Table 4.8.1. Structure and evolution of tax and duties with which RMGC contributed to the constituency of the state income budget (Romanian Lei) Tax on the Tax on the Custom activity of income Increase and duties and prospecting, accomplishe penalties Tax on salary Value-added other duties Other tax Year exploring a nd d by non- corresponding income tax on and duties exploiting the resident to state budget international mineral natural or obligations transactions resources legal persons 1997 3.319,70 21.733,90 1998 25.669,00 134.274,00 75,50 1999 128.946,30 46.384,90 96.959,40 4.849,60 2000 621.687,60 10.770,00 29.904,00 363.871,50 5.540,80 152.794,80 2001 675.030,90 18.311,56 5.785,00 437.357,90 9.896,20 2002 976.322,00 1.697.225,00 60.400,00 50.875,90 316.883,00 2.018.396,00 2003 863.560,00 3.164.078,00 60.4 00,00 78.190,00 181.832,00 189,00 2004 1.268.414,00 59.707,00 189.039,00 10.909,00 2005 762.007,00 61.313,00 84.549,00 37.190,00 2006 1.241.653,00 37.021,00 Total 6.566.609,50 4.879.614,56 258.375,00 361.362,70 1.707.512,80 20.362,10 2.219.478,80 Source: Data provided by RMG

Data presented under Table 4.8.1 lead to the following general conclusions: - unsteady evolution, sometimes even discontinuous, of the tax and duties constituting the state budget; - the structure of the tax and duties representing the contribution of the company to form the income corresponding to the state budget is comprised of: tax on salary income;

68 Fiscal Code, art. 124^19.

105

value-added tax; Tax on the activity of prospecting, exploring and exploiting the mineral resources; Increase and penalties corresponding to state budget obligations , - the steady features of the state budget formation with the amounts represented by the salary income taxes; - during the period when the added value tax was due, years 2001, 2002, 2003 respectively, it recorded an increasing trend, from Rol 18.311,56 in 2001, to Rol 3.164.078 at the end of the mentioned period; - the discontinuity of the custom duties, respectively as element in disconnecting relations to the state budget during 1997 – 2000 and 2002 - 2003; - tax from non-resident persons was due as of 1999 and it also had a discontinuous evolution; - the overall situation of the state budget is completed with the increase and penalties for failure to duly pay previous dues to the state budget. They were due for 5 of the 10 years subject to analysis, and the maximum level was reached in 2002. Certainly, such a situation may generate both positive interpretations and negative ones, as regards the synchronisation with the legal payment standing dates of due taxes and duties. The mitigating circumstance for the aforementioned might have been represented by the tendency to decrease penalties and the increase as of 2003. The relevance of the salary income tax evolution is indicated in the analysis of the hereby budgetary debt as to the number of employees, according to Table 4.8.2.

Table 4.8.2.

Salary income tax evolution as to the number of employees

Salary income Number of Year Comparison tax employees

1998 25.669,00 78,00 329,09 1999 128.946,30 127,00 1.015,33 2000 621.687,60 237,00 2.6 23,15 2001 675.030,90 184,00 3.668,65 2002 976.322,00 240,00 4.068,01 2003 863.560,00 317,00 2.724,16 2004 1.268.414,00 454,00 2.79 3,86 2005 762.007,00 340,00 2.241,20 2006 1.241.653,00 394,00 3.151,40

The conclusion is that there is a discontinuous evolution of the salary income tax, as to the number of employees, during the analysed period, increasing evolution by 2002 respectively, a decrease in 2003, a significant increase in 2004 and 2006. Certainly, the given circumstances are clarifying at a global level, but it may be interpreted, in what it is significantly dependable on the categories of personnel employed. Range of sources forming the state social benefits fund In Romania, the financing of the general costs generated by retirement are mostly accomplished on the basis of the contributions undertaken by insured persons and their employers, added with the contributions

106

for treatment and leave tickets, transfers from the state budget and other sources. The contribution for social benefits represents the main source to form the financial funds needed to fund the expenses for public pensions and is due monthly by mandatory insured persons (as future beneficiaries of the retirement benefits) and by employers. During 2001-2006 the quota established by the contributions to the social benefits are indicated in Table 4.8.3.

Table 4.8.3.

Quota for the contributions to the state social benefits during 2001-2006 Contribution quota (%) Employer Period Insured Ordinary Exceptional Special Persons Conditions Conditions Conditions 2001 – 2002 11,67 23,33 28,33 33,33 2003 9,50 24,50 29,50 34,50 2004 – 2005 9,50 22,00 27,00 32,00 2006 9,50 19,75 24,75 29,75

RMGC Contribution to accomplishing the indicators comprised by the Social Benefits Budget is presented under Table 4.8.4.

Table 4.8.4.

Structure and evolution of the state social benefits income paid by RMGC during 1997 - 2006 Name of the budgetary income State social Contributions Contributions Additional Hazard benefits for insurances to the state pensions and contributions for labour social benefits fund accident Year due by accidents and due by the fund Total employers professional insured persons illnesses due by employers

1997 182,60 - - 24,00 25,60 232,20

1998 30.535,70 - - 3.192,20 1.061,60 34.789,50

1999 378.250 ,30 - - 48.912,20 - 427.162,50

2000 793.809,50 - - 105.679,20 - 899.488,70 2001 726.575,10 - 176.260,00

107

39.895,00 - 942.730,10

2002 1.184. 599,00 - 493.069,00 - - 1.677.668,00

2003 1.197.208,00 19.002,00 434.596,00 - - 1.650.806,00

2004 1.568.288,00 33.799,00 626.480,00 - - 2.228.567,00

2005 1.483.034,00 58.497,00 570.718,00 - - 2.112.249,00

2006 1.879.475,00 177.364,00 722.707,00 - - 2.779.546,00

The structure of the contributions forming the state social benefits budget bears the mark of the legislation amendments, including the removal of the contribution for the additional pension, as of April 2001, together with the introduction of the social benefits contribution due by the insured persons during the same period, the increase of the fund for labour accidents and professional illnesses, creating and cutting off the fund for leaves and state social benefits indemnities, etc.

The unemployment insurance budget . Unemployment is the phenomenon characterized by an excess of offer in comparison to the labour demand, the excess of labour in comparison to the number of employees, under efficiency conditions imposed by the market economy. Unemployment insurance represent a special means of insurance created to compensate for the lack of income during a limited period of time. Unemployment insurance programs have been initially created to supply a means of financial assistance to those who lost their work place and are looking for another one. Building of funds necessary for ensuring the development of unemployment insurance is done based on the following sources :

a) contributions of employers and legal entities who have employed public servants and cooperating members. Since 2007 the contribution of 0.25% due by the employer to the guarantee fund for the payment of due wages is included, according to Law 200/2006 69 regarding the building up and use of the guarantee fund; b) individual contributions of persons who are compulsorily insured (including persons who perform activities according to an individual labour agreement). c) Income from other sources of the unemployment insurance budget is mainly built up of: interests, increases for the late payment of contributions, reimbursement of granted credits according to the law, taxes collected by the National Agency for Employment from professional training and taxes for the authorization of employment service suppliers, penalties, fines and any other cashed amounts to the unemployment insurance budget, according to the law.

Table 4.8.5 The Contribution of Rosia Montana Gold Corporation to the Formation of Income Sources of Unemployment Social Insurance Budget Year Budget income name Total

69 Official Gazette no. 453 of May 25 th 2006. 108

Unemployment Unemployment Increases of the insurance insurance state social contributions due contributions insurance by employers due by budget employees

1997 39.70 7.90 - 47.60

1998 5,286.80 1,053.00 - 6,339.80

1999 49,489.80 9,893.90 - 59,383.70

2000 105,184.40 17,585.30 59.60 122,829.30

2001 128,413.75 21,984.00 - 150,397.75

2002 240,463.90 47,965.24 - 288,429.14

2003 168,742.00 47,800.00 - 216,542.00

2004 209,628.00 69,804.00 - 279,432.00

2005 186,841.00 61,236.00 - 248,077.00

2006 225,513.00 83,608.00 - 309,121.00 Total 1,319,602.35 360,937.34 59.60 1,680,599.29

The health social insurance single national fund is built up from contributions of legal entities and individuals. Legal entities or individuals who have employees must calculate and pay a contribution quota to the wage fund, for the health insurance of the personnel in the respective unit. The wage fund means the total amounts used by an individual and a legal entity to pay wages rights or rights related to the wage (including the allowance for temporary labour incapacity).

Table 4.8.6 The Contribution of Rosia Montana Gold Corporation to the Formation of Income Sources of the Health Social Insurance Budget

Contributions Contributions Special State Social National Risk and of health of health health education solidarity solidarity accident Year Total social social fund support fund for fund fund insurance due insurance due fund handicapped by employers by employees persons 1997 - - 15.90 - - - 25.60 41.50 1998 - - 27.0 0 - - - 1,061.60 1,088.60 1999 149,334.00 - - 7,272.60 25,231.60 - - 181,838.20 2000 310,440.50 - - 72,028.60 -

109

42,073.70 811.60 425,354.40 2001 198,229.00 199,648.80 - 51,365.50 - 85,983.30 - 535,226.60 2002 355,948.00 359,407.00 - 3,960.90 - 103,858.00 - 823,173.90 2003 337,766.00 321,461.00 - - - 6,511.00 - 665,738.00 2004 493,947.00 460,507.00 - - - - - 954,454.00 2005 443,241.00 412,90 3.00 - - - - - 856,144.00 2006 633,799.00 583,376.00 - - 54, 291.00 - - 1,271,466.00

Total 2,922,704.50 2,337,302.80 42.90 104,672.70 151,551.20 197,163.90 1,087.20 5,714,525.20

Planning is essential for the success of an organization because it constitutes the decisive issue for structuring targets at the level of the organization and hierarchization of priorities in the decisive and operational approach of issues. At the same time, it is the most effective way of capitalizing the economic, financial, managerial, commercial, technical, technological and human potential the organization has, against the background of the existence and performance of numerous variables which must not be neglected.

The following table shows the estimations of the company regarding supply sources of different budgets up to 2007-2025.

Table 4.8.7 Estimated taxes, fees and dividends of Rosia Montana Gold Corporation during 2007-2025 ($) CRT. SPECIFICATIONS TOTAL NO. 1 Salary tax 121,334,555 2 Corporate tax 283,953,000 3 Royalties 101,148,000 4 Property tax 11,381,500 5 Land tax 20,512,800 6 Excise duties 112,000,000 7 Other taxes and fees 522,337 8 Dividends 305,865,220 10 TOTAL 956,717,413

We can notice that, during the working period, the benefits of the Romanian state , as a result of dividends, taxes and fees paid by Rosia Montana Gold Corporation amount to almost one billion dollars.

Considerations regarding the statute of disadvantaged area

110

Disadvantaged areas are perceived 70 as geographical areas strictly territorially marked which fulfil at least one of the following conditions: F They have mono-industrial output structures which involve more than 50% of the employed population, in the activity of the area; F They are mining areas with personnel laid off by collective dismissals, as a result of reorganization programs; F collective dismissals affect more than 25% of the number of employees living in the respective area; F unemployment figures exceed the national unemployment figure by 25% ; F they lack means of communication, and the infrastructure is weakly developed. The period for which a geographic area can be declared disadvantaged area is at least 3 years and not more than 10 years. The statute of disadvantaged area attributed to Rosia Montana locality by Government Decision no. 813 of October 7, 1999 regarding the statute of disadvantaged area of Apuseni mining area, Alba county, means the exemption from payment of the following taxes and fees: - custom tax and value added tax for cars, equipment, means of transportation, other redeemable goods which are imported with a view to making investments in the area; - the value added tax for cars, machines, equipment, means of transportation, other redeemable goods manufactured in the country with a view to making investments in the area; - exemption from corporate tax payment during the existence of the disadvantaged area; According to article 3 of the law mentioned above, the period for which Apuseni mining area (including Rosia Montana) has been declared disadvantaged area is 10 years. The implications of such a temporary limitation are favorable from a state budget pint of view, in the sense that, during 2009-2024, it will receive, according to the estimates of the company, corporation taxes worth $ 283,953,000. Because the statute of disadvantaged area has been attributed in 1998, facilities related to it will end in 2009.

4.9. Development of business in the area and the collaboration with local economic units

Rosia Montana Gold Corporation project can constitute an accelerator of the business general development in the area by stimulating the already existent businesses and the apparition of new business opportunities as a result of the externalization of certain services offered by the company. During the project design, the company cooperates with economic units and construction companies in the area for the supply of raw materials and materials, different utilities and services necessary for the operational infrastructure of the project. The purchase policy of the company gives priority to local companies in the area and in the country. The following table presents the situation of payment to suppliers in the area, during July 2006 - March 2007, according to the data provided by the company.

70 Official Gazette no. 378 of 2.10.1998, art. 1, Government Emergency Ordinance no. 24 of September 30th 1998 regarding the regime of the affected areas. 111

Table 4.8.8 The situation of payment to suppliers in the area, during July 2006 – March 2007 CRT. RMGC SUPPLIER LOCALITY PAID NO. AMOUNT (RON) 1 ALVIS COM SRL / electro-technical equipment: - 2910,3 saws, motor-saws, parts, accessories 2 ANDA COMEX / protocol products Roşia Montană 23641,67 3 ANDY SRL / protocol products Roşia Montană 17461,86 4 AUTOCOMPANY / auto parts Sohodol 6872,18 5 BRADET IMPORT EXPORT BM SRL / Roşia Montană 234650,9 territorial development services, demolitions, access ways 6 CUPRU SIND. SA / knapped stone, transportation Abrud 61343,68 7 DIDI SRL / building materials Abrud 35051,79 8 DIVERTIS COM SRL / building materials Abrud 12107,58 9 ECO INVEST SRL / constructions - 124620,7 10 GOSEN / textile clothes Abrud 2209 11 IUSTY CRY SRL / protocol products Roşia Montană 19643,84 12 L.M. MIHAITA / building materials Abrud 12986,06 13 MADALIN&CAMY SRL / tip-up truck Roşia Montană 16492,1 transportation 14 NICU-VIO SRL / wood for burning Ciuruleasa 84913,3 15 PROTECTOR PHOENIX SRL / individual and Câmpeni 128818,8 collective protection equipment 16 R&M PRATA SRL / building materials Abrud 40170,79 17 RO&NELU ROSIA SRL / protocol products Roşia Montană 153642,7 18 ROSIA CONSTRUCT PREST SRL / territorial Roşia Montană 186062,7 development services 19 SEDAC SRL / wood for building Bistra 36153,78 20 TEHNO DOMA SRL / electrical equipment: Câmpeni 34604,93 pumps, motor-compressors, parts 21 VIVA / building materials Punct de lucru 37640,92 Abrud 22 ZAMOLXIS ALFA SRL / electronics and Câmpeni 25097,25 electronic house equipment 23 FUNNY BOYS / auto repairs Roţia Montană 143447,1 24 FLADAR TRANS / transportation Câmpeni 32551,75 25 PAM TRANS / transportation Zlatna 67057,58 26 ARIESUL PRODIMEX SRL / transportation Baia de Arieş 12018,55 27 ARIESUL SA / transportation Câmpeni 134162 28 CRINUL ARIES SRL / transportation Baia de Arieş 10074,45 29 ADY INTERNATIONAL TRANSP. / Abrud 120343,1 transportation 30 DOFANY TRADE / transportation, supply with Abrud 47845,35 building materials

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31 LAZEA STELIAN PFA / electric auto repairs Roşia Montană 928,8 32 TOTAL 1865525,43

Most of Rosia Montana Gold Corporation suppliers are located in localities inside project impact area and in Rosia Montana (most of them). Also, Rosia Montana Gold Corporation S.A. has concluded lease agreements with many companies, as shown in the table.

Table 4.8.9 Rental contracts Date of Termination Company Locality beginning of Lease object date performance Cartel Bau SA Cluj Cluj Napoca May-02-2000 Sep-11-2000 Equipment Cominco SA- Demec March-20- Abrud Nov-30-2000 Equipment Abrud Branch 2000 Hidroconstructia SA Bucuresti- Raul Mare Deva April-24-2000 Oct-30-2000 Equipment Retezat Branch

Individual Roşia Montană 01-May-02 31-Oct-02 Equipment

Individual Roşia Montană 01-April-02 01-Jul-02 Equipment Individual Roşia Montană 03-Iun-02 31-Jul-02 Equipment Individual Roşia Montană 15-July-02 15-Sep-02 Equipment Individual Deva 23-July-02 01-Oct-02 Equipment Individual Carpenis-Alba 16-May-02 16-May-03 Equipment Individual Roşia Montană 01-August-02 31-Aug-02 Equipment

Individual Roşia Montană 01-August-02 31-Aug-02 Equipment

Individual Roşia Montană 01-July-02 01-Jul-02 Equipment

Individual Roşia Montană 01-August-02 31-Aug-02 Equipment Individual Roşia Montană 01-Aug-02 31-Aug-02 Equipment Individual Gura Roşiei 01-August-02 31-Aug-02 Equipment

Individual Roşia Montană 08-July-02 08-Jul-02 Equipment

Individual Roşia Montană 01-August-02 31-Aug-02 Equipment Individual Abrud 19-June-02 19-Aug-02 Equipment Individual Gura Cornei 23-July-02 23-Jul-02 Equipment Police Inspectorate of 20-November- Alba Iulia 20-Nov-03 2 pistols and technical assistance Alba County 02 Individual Roşia Montană 01-August-02 31-Aug-02 Vehicle (Aro).

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January-01- Deva Gold SA Deva nelimitat Equipment and repair services 2001 Laris & Dan SRL Roşia Montană 01/02/2003 31/12/2003 Auto vehicle Manuel Inter SRL Roşia Montană 10/02/2003 31/12/2004 Auto vehicle Beton Expert SRL Abrud 17/09/2003 30/09/2003 Building equipment Beton Expert SRL Abrud 13/10/2003 Dec 2004 Equipment Bradet Import Export Roşia Montană 26/01/2004 17/04/2004 Drilling equipment BM SRL Manuel Inter SRL Roşia Montană 26/01/2004 17/04/2004 Tractor Avanti Trans SRL Roşia Montană 16/02/2004 31/10/2004 Auto vehicle Bradet Import Export Roşia Montană 01/04/2004 01/08/2004 Drilling equipment BM SRL Alin Forest S.R.L. Roşia Montană 01/04/2004 01/08/2004 Forestry equipment Laris & Dan SRL Roşia Montană 01/04/2004 31/12/2004 Auto vehicle Manuel Inter SRL Roşia Montană 01/05/2004 31/12/2004 Camion Truck Rosia Construct Prest 01-December- Roşia Montană 01-Apr-05 Snow bulldozer SRL 04 Police Inspectorate of Alba Iulia 24-March-04 24-Mar-05 2 pistols and technical assistance Alba County Romtelecom SA- 8/12/2007 + Telecomunication Cluj-Napoca 12-August-05 yearly PABX equipment Department of Cluj renewal Police Inspectorate of Alba Iulia 22-April-05 22-Apr-06 2 guns şi technical assistance Alba County Map Timisoara SRL Timişoara/ 02-March-06 27-Mar-06 Roll-up system Police Inspectorate of Alba Iulia 20-April-06 19-Apr-07 2 guns and technical assistance Alba County Classicom SRL Timisoara 13-June-06 14-Jun-06 Microbus

Ady International Abrud 14-July-06 31-Aug-06 Truck Transport SRL

Ambulance Service of Arad 25-August-06 25-Aug-06 Ambulance Arad County PFA Dura Sorin Dan 05-September- Baia de Arieş 05-Oct-06 Topographic stations "Top Dan" 06 Brădet Import Export Roşia Montană 30-October-06 N/A Equipment BM SRL

Even if the economic potential of the area allows the development of certain economic activities, other than mining activities, the analysis made at 3.5 reveals the fact that the economic potential of the area is insufficiently capitalized. Rosia Montana Gold Corporation Project could stimulate the general business outlook in the area for the development of new economic networks which can lead to the capitalization of the area and mainly of the available labour force. The business opportunities and capitalization of the economic potential within localities in the impact area of the project are:

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• Development of light industry (clothes, textiles, knitwear) which absorbs female labour (mainly Abrud town, where there is qualified labour); • Development of wood manufacturing industry which capitalizes local tradition and increases the degree of wood use, one of the most important local resources which, at present, is mainly capitalized in gross state (logs) or semi finite products (timber). Thus, a wood briquetting centre (in Brista) as well as furniture factories can be set up. • The development of mountain tourism and agro tourism which capitalise on the tourist potential of Apuseni Mountains by improving the existent accommodation places, creation of new small hotels or agro tourist pensions, the set up of certain restaurants for tourists etc. Attracting tourists will lead to the development of new businesses like traditional trade workshops, trade with this type of products, the set up of certain tourism agencies in the area etc. After the construction of “Piatra Alba” location, measures of including this location in the tourist circuit and obtaining the statute of tourist resort can be taken. • Development of agriculture and milk and meat manufacturing industry. Milk collection and processing centres, small leather and fur workshops, workshops for wool washing, spinning and weaving and workshops for carpet weaving can be set up in the area. • Development of traditional trades by setting up certain workshops for wood handicraft workshops, wicker work and osier work, tubs, casks and musical instruments. Also, small centres for purchasing and capitalizing on berries and medicinal herbs can be set up in the area. The general development of the local infrastructure, the increase of purchasing power of the population, the development of the entrepreneurial spirit as a result of training courses offered by the company and the existence of a general business incentive climate creates the premises for the apparition of new investors in the area, including foreign capital investors. The success of Rosia Montana Gold Corporation project can constitute an incentive and an example in the case of foreign investments, for the development of new businesses in the area. CUPRUMIN S.A. Abrud, another big declining economic unit in the area which manages Rosia Poieni mining activity can benefit from the initiative and experience derived from the research project, in connection with the mining activity. Services which will be outsourced by the company or shall develop thanks to Rosia Montana Gold Corporation project, mainly refer to: • geology laboratory tests which can be developed in the exploitation stage; • tourism services – as a result of the intensification mainly of business tourism in the area; • mailing services (regular, express, courier); • communication services (fix and mobile telephony, Internet) ; • banking (all kind of services); • medical services; • cleaning services; • guard and security services (for “on site” needs); • safe transportation for values (money, gold) ; • professional consultancy services in the business, management, marketing and accounting fields; • lease services for locations of head offices and business meetings, sublease of different types of locations; • authorised translation services; • professional printing and editing services;

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• photography services (processing, scanning, printing on different media – photo laboratory); • sound and light services for different events; • notary and legal assistance and consultancy services; • management agencies for intercultural events.

S.C. Roşia Montană Gold Corporation S.A. offers the possibility of professional training by training courses organized by “Training and Improvement Centre and Ability Development Program”. The training domains are the following: • general entrepreneurial formation (general management courses); • secretariat, management, computer and foreign language courses; • accounting • attracting funds and application improvement for banks and other financing institutions; • translators, interpreters; • modern (business, scientific, cultural, sports events) and traditional (fairs, festivals, pilgrimages, dedication days, celebrations during lifetime) event managers; • personnel for tourist, host, information, agency and ticketing activities, tourist directions, guides, general sport instructors and mountain sport instructors; • personnel for hotels and restaurants, catering, traditional and multicultural cuisine.

Businesses already developed in the area as a result of the direct impact of Rosia Montana project are the following 71 : • GenFor –is a drilling company set up in Rosia Montana in the year 2002 and has 140 employees within the inhabitants. • S.C. Brădet S.R.L. – is an equipment lease company; it has been set up in Rosia Montana in order to support the geological research program of the Project; it has 140 employees within the inhabitants. • Gold Essay Laboratory – the laboratory has been set up at the feet of Rosia Montana valley, with a view to developing chemical analysis for mining projects of the Project. It has very modern technology and has contracts with other Romanian, Ukrainian, Bulgarian, Serbian and Russian companies.

4.10. The Micro Crediting Initiative – Local Development Strategy Component

Another part of the economic results of Rosia Montana Gold Corporation project, except for the employment opportunity, is its involvement in the development of the community by encouraging business environment in the area, changing perceptions regarding benefits brought by active investment behaviour. The set up of Rosia Montana Micro Credit institution (2006) implicitly contributes to the diversification of the economic development and obtaining durable future benefits within the local community, important tasks of the current rural development strategy at a national and European level. Rosia Montana Micro credit is thus part of the Community Development initiative of the Company which has developed a complex program regarding durable development, program which has also been mentioned in other chapters of the study.

71 Proiectul Roşia Montană, Planul L- Plan de dezvoltare durabilă a comunităţii, volumul 31, Mai 2006, pag. 63 116

The Sustainable Development program which is meant to improve medical and social services for residences, education and environment, as well as maintenance and capitalization of the whole cultural inheritance of the community did not neglect the fact that all this is not possible without the long term existence of a favourable climate in the area. According to the law 72 , the micro financing company is a Romanian legal entity set up to grant micro credits to beneficiaries, and cannot develop deposit or reimbursable fund attraction from people, in the sense of Banking Law no. 58/1998, with further changes and completions. According to the law, micro credit is a loan, with or without interest, granted at the request of beneficiaries, individuals or legal entities, with a nominal value of up to € 50,000, for a reimbursement period of maximum 60 months, with or without period of guarantee, meant for the development of an activity, business or project, support of community or economic development projects, initiatives of the local community and social programs with a view to improving the standard of life of local communities. The micro financing companies have been set up quite recently in Romania’s economy. According to the general Registry of non-banking financing institutions, the National Bank of Romania has registered 3 micro crediting companies in 2006 and 4 micro crediting companies in 2007, until the beginning of July (the current year). The micro crediting system initiated by Rosia Montana Micro Credit is a real non- banking financial instrument for the development of the entrepreneurial spirit of inhabitants of Rosia Montana, Abrud, Campeni, and of citizens in the surrounding localities (propagation impact area), through component elements and conditions which must be fulfilled to obtain a loan. The wide range of products and services made available for those interested make private persons and small entrepreneurs concentrate upon activities which can become successful businesses by facilitating financing of valuable and viable business ideas. Thus, during a precursory stage of the loan granting activity, people which benefit from a Training Program which mainly aims at helping entrepreneurs identify the type of business which corresponds to their regional needs, necessary instruments for starting the business or become acquainted with the basic elements of a business plan meant to ground their future economic activity. In the case of small entrepreneurs who want to develop their current business, Rosia Montana Micro Credit offers counselling services in the financial, legal, administrative and organizational fields, with a view to improving the economic effects of decisions made. The clients of the Micro Credit institution will also benefit from consultancy regarding the drawing up of the necessary documentation for starting a business, for instance the necessary documentation for the registration of the company, drawing up of the strategy and business plan etc and credit and business management. The conditions for granting a loan show the fact that credit facilities mainly aim at the development of the economic environment in the area, and selectively apply to individual or group entrepreneurs who live inside the community or whose new or existent business takes place inside the community, and who show a clear strategy in their business plan. At the same time it proves that the Micro Credit Institution also grants loans to those who want to develop a business without having a banking or business history (banks do not have such a facility); thus, at the same time, small and medium sized enterprises which need capital to develop can also apply for loans. Thus, the Micro Credit institution points at a certain

72 Law no..240 of July 15th 2005 regarding microfinanciang companies, published in the Official Gazette no. 663 of July 26th 2005 117 entrepreneurial segment, at entrepreneurs who want to transform their creativity potential into economic potential, at first at a small scale, according to granted micro credits, and then, by accessing banking funds, aims at another economic dimension. Rosia Montana Micro Credit unit becomes an opportunity and, observing the micro credit concept, it offers funds accessible to a number of applicants, at a small scale and for relatively short periods of time. The amount of granted credits will be around € 5000, plus an interest which has not been decided yet, but which will probably be under the level of the interest of commercial banks. The types of loans granted by Rosia Montana Micro credit, attractive because of the small interest and multiplication effect, will improve the economic environment and at the same time contribute to the prosperity of Rosia Montana community. An important and ambitious objective which the Micro Credit institution aims at is not only encouraging business development during the whole period of the project, but also after the closing of the mine. Thus, Rosia Montana Micro Credit contributes, together with the substantial wage income and compensating amounts offered for purchasing properties, (which usually are not fully spent for the purchase or construction of new residencies) to capital infusion in the area, necessary for the social-economic stimulation of the area during the following period of time. Rosia Montana Gold Corporation, the initiator of micro crediting activities aims at the following objectives of a local durable development: • increase of employment of persons who are looking for a job; • consolidates small trading companies; • supports dismissed personnel to become entrepreneurs if they have the initial amount to set up a business; • stimulates the development of the economic environment by encouraging the private sector. At the same time, Rosia Montana Gold Corporation mining project produces, because of its size, auxiliary, utilities and supply service demand which can constitute direct as well as indirect business opportunities in the area.

4.11. Development of education and professional training activities

RMGC project proposed and succeeded to initiate and develop the professional training and formation programs which can be considered pioneer programs in Romania. RMGC sustainable development program succeeded in outlining the requirements of the professional education and formation programs for the inhabitants of the impacted zone. Some of the measures taken for this aim are complying with the regulations which the European Community proposed and required for the professional development and training which covers a wide range of qualifications, expertise such as secretariat, bureautics computer assistance, human resources work safety and up to those requiring strict professional skills for trades like:: shop assistant, cook, wood carpenter, security worker, electrician, excavator operator, plumber, steel bender, faience worker, welder, bricklayer, excavator operator, welder, etc. The business development in the zone resulted in the start up and development of some courses for encouraging the entrepreneurial initiative supporting the local people to become entrepreneur and run their own business. Also, RMGC taken into account the professional training for strict specialized domains related to the project activities.

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Situation of courses organized by RMGC and the number of persons who benefited of the respective courses held between July 2006 and May 2007 is given in the table 4.1.1. Table 4.11.1 Professional training courses organized by RMGC NO COURSE NOOF PARTICI[PANTS 1 Document management and secretariat 40 2 Tourism pension manager 123 3 Security worker 36 4 Cook 23 5 ECDL computer operator 153 6 Training course for Work safety and 25 occupational health 7 Carpenters, joiner, parquet layer 39 8 Electrician in constructions 30 9 Evaluation of professional disease and 18 accident risks 10 Excavator operator 56 11 Faience layer 53 12 Steel bender, - prefabricated mounter 25 13 Boiler fire man 39 14 Human resource inspector 80 15 Heating boiler and gas fitter 26 16 Technical – sanitary installer 44 17 Shop assistant 131 18 Worker of structures for constructions 8 19 Data validation and processing operator 79 20 Stacker operator 23 21 Welder 55 22 Seller of food products and industrial 28 products 23 Bricklayer, stone carving worker, plasture 89 worker 24 Painter, diver, ipsos worker, wall paper 39 mounter 25 Business Training 127 Total 1389 Source: data supplied by RMGC

The local people seem to be attracted by the courses the company organized or them and which offer them new perspectives on the labour market or follow the development of the entrepreneurial skills: tourism pension administrator (123 persons), computer operator (153 persons), shop assistant (131 persons) and business training (127 persons). The local labour force, through the training programs offered by RMGC is competing on the local labour force market not only from the point of view of the mining sector requirement but also of other activity sectors.

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By means o the partnerships established with the schools of the zone, RMGC gets directly involved with the improvement of the educational process particularly from the children civilian development point of view. RMGC funded the schools of the zone by direct sponsorships. Further on, there are some of the schools which benefited of sponsorship actions awarded by the company: Secondary School of Bistra, Forestry Vocational School of Câmpeni, HCC High school of Abrud, Avram Iancu National College of Câmpeni, Secondsary School Simion Balint of Roşia Montană, Dorin Pavel Technical College of Alba Iulia etc.

4.12. Establishment of a public – private partnership

The management of the RMGC project can be an example of public-private partnership management. To this aim, there have been revealed several orientations of this partnership: • Consulting the citizens regarding the major decisions related to the project ; • Specific agreements with local administrations in order to support some of their initiatives; • Collaboration with the education institutions of the zone and their financial and material support; • Collaboration with other social and cultural institutions of the zone (church, houses of culture, medical care facilities police station, fire stations ); • Collaboration with the NGO’s of the zone; • Consulting the civilian society through the authorized representatives in order to identify the problems the local community is facing and to support them; • Collaboration with the business environment of the zone in order to identify and work out the problems of common interest so that to ensure the sustainable development of the zone. We shall give examples of several programs proposed by RMGC and which are under development 73 . There participate several partners, but the involved parties do not exercise their direct authority within the actions undertaken as the involvement and collaboration rate between partners are established by means of consultations and general consensus. Rosia Montana Environmental Partnership aims at the awareness of the public regarding the importance of a clean environment and the participation at the working out process of the issues related to that wish of all the interested factors of the zone, namely; local authorities, schools economic entities and NGO’s. Among the partnership goals the following are mentioned: - Information of public and interested factors regarding the natural environment issues; - Identification of the main threats and problems the environment is facing; - Supporting and encouraging the volunteer actions to work out the environmental problems; - Completion of the education activities in order to acknowledge the significance of the environmental protection; - Maintenance and development of the leisure zones; - Ecotourism promotion. To fulfil the partnership goals there have already been identified some common activities focused on education campaigns of children but also of the public at large within special

73 www. rosiamontanaforum.ro- Iniţiative pentru dezvoltare durabilă în zonele miniere din bazinul râului Arieş 120

information centres. It has been also proposed to plan a leisure zone (Tăul Brazi, ecological park of Gura Cornei, playgrounds etc.), young tree planting, modern waste management etc. The main partners include the mayoralties and schools of the zone impacted by RMGC project but also different NGO’s acting in the region (Pro Roşia Montană, EcoAbrud, ProDreptatea - Roşia Montană Associations, CERT Apuseni). Partnership for bio-diversity is closely related to the environmental partnership and its goal consists of the rehabilitation of the ecological balance and bio-diversity of the local flora and fauna systems which have been severely impacted by the human activity. The activities to be developed take into account both the citizen information and the factors interested in it about the bio-diversity importance and the concrete actions such as monitoring and rehabilitation of the ecological balance based on bio-diversity. This partnership includes some important institutions and authorities of the region and from the country which are interested in the field of bio-diversity such as the: National Museum of Natural History „Grigore Antipa” Bucharest, Retezat National Park, Institute of Research and Forestry Planning (ICAS) etc. Rosia Montana re-forestation program compensate the impact produced on 246 ha of forestry land awarded for RMGC project implementation. Instead, there will be afforested approximately 335 ha of land in Rosia Montana and surroundings with valuable species (black pine, fir-tree, plane tree, willow). The main partners are the mayoralties of Roşia Montană and Abrud, Forestry District of Abrud and Alba Iulia, ICAS, CERT Apuseni, Students Union of The Technical University of Cluj-Napoca, Forestry Vocational School of Câmpeni. Rosia Montana Education Partnership aims at the improvement of the educational activity within the communities impacted by Rosia Montana Mining Project and address all he young people who are the direct beneficiaries of the educational action, and also to their teachers. The objectives of the partnership and activities to be undertaken take into account the improvement of the educational process so that to get new knowledge and skills and both the young and the other categories of population improve their competence. There will be organized actions within the educational school and extra – curricula activity programs for pupils. At the same time, a special care will be given for making more attractive the job conditions for the educators and teachers and for their stability and improvement of their skills. The project partners are of course, first of all, the schools and mayoralties of the zone which benefit from RMGC support. „Good neighbour partnership aims at the maintenance of the social cohesion and assistance awarded to vulnerable people. Besides the social assistance the partnership has been built to mobilize the internal resources of the community and each family to ensure the materal and financial means required by own means. Currently the project partners are the NGO’s supporting MRGC project as well as the churches and other cult institutions existing in the zone. Also „Simion Balint” school of Roşia Montană, is a partner as the pupils participate, particularly at the vulnerable people assistance and it is also a means for social education. Partnership for Rosia Montana Cultural Heritage monitors the research, preservation and valorisation of the rich cultural heritage of Rosia Montana locality. It creates the premises of the cultural tourism development. The activities developed so far focused on the completion of some rescue archaeological investigations, ethnographic studies local architecture investigation and inventory of the historical monuments, other surface and underground investigations to identify important

121 historical sources of the local and national civilization. There has been drawn up the Zonal Urban Plan for Rosia Montana Protected Zone and there have been published several books containing the outcomes of the investigations performed by the experts in the field. The success of the partnership is guaranteed by the value of the partners involved such as: National Museum of Romanian History (Bucharest), Union National Museum (Alba Iulia), Institute of Systemical Archaeology (Alba Iulia), Museum of Dacian and Roman Civilization (Deva), National Museum of Transylvanian History (Cluj - Napoca), Babeş-Bolyai University, (Cluj-Napoca), „Le Mirail” University (Toulouse –France) etc. Centre of Social Economic Research – Rosia Montana including a group of experts in the field of social-economic issues who work closely together to identify and work out the social-economic issues of the zone. The information obtained are provided by the economic entities, local authorities and other interested factors for the substantiation of the decisions focused on the zone sustainable development. The partners within this centre are the Mayoralties of Rosia Montana and Abrud, „1 Decembrie 1918” university of Alba Iulia, Faculty of sociology and Social Assistance (UBB Cluj-Napoca), Tibiscus University (Timişoara), Employers Association ‘Munţii Apuseni’, Environment and Health Centre of Cluj-Napoca etc. Partnership for the beneficiation of the tourism potential of the zone is likely to be one of the significant goals of RMGC in order to achieve the sustainable development of the zone. The natural and anthropic patrimony of the zone cannot be rendered valuable unless there is a suitable infrastructure, an appropriate marketing taking into account that the entrepreneurial skills as well as the skilled staff is largely missing. All these actions can be implemented only with strong financial support and such funds can be attracted by means of public - private partnerships. Rosia Montana Mayoralty is the initiator of „Discover Roşia Montană●Protected Historical Zone”, which is supported by RMGC. It aims at the development of the tourism in the region as one of the action for the zone sustainable development. The tourism attractions proposed within the partnership are: • Tourism of XVII-XIX century, history of the Austrian – Hungarian Empire; • Cultural heritage and Roman patrimony; • Modern industrial mining; • Eco-tourism combined with mountaineering tourism. To develop a successful tourism activity, it is necessary to find a combined way to achieve them and thus the zone attraction is enhanced. Other programs and partnerships where RMGC Company is involved and which are meant to support the sustainable developments of the zone are: - APELL centre for community acknowledgement related to fire risks; - Rosia Montana Environmental Monitoring Program; - Hydro-chemical modelling program of Mures river; - CERT Apuseni; - Program entitled Summer School Rosia Montana; - Professional training and trade school of Rosia Montana; - Partenership for Business Development of Rosia Montana; - Roşia Montană Watch. Completions of the respective partnership objectives through specific activities constitute a mean to accomplish the sustainable development of the zone from economic, environmental and social – cultural point of view

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B. Aiming to identify the perception and expectations of the leaders from Roşia Montană regarding RMGC project we designed an interview guide [ANNEX], which contains questions that are related to the main (preliminary) results that were obtained further to questionnaire application, in order to find out their reactions to the perception and expectations of the commune inhabitants attached to the project and also their own perceptions and expectations 74 . This instrument was used during individual interviews that were applied to four leaders that are codified as such: A – informal leader; B – representative of the Town Hall from Roşia Montană; C – leader of non-governmental organization, D – representative of the Local Council. The criteria for the selection of interviewed leaders were: (1) (publicly known) position regarding the project, achieving a “pro project” balance: 2; “against the project”: 2. and (2) status in the community. The interviews were applied during the period 13 – 14 July 2007. The results that were obtained further to the review of the interview contents are grouped considering three aspects: (1) Level of information of the commune inhabitants regarding RMGC project; (2) Agreement on the project; (3) Project alternatives.

1. Level of information of the commune inhabitants regarding RMGC project

Referring to the fact that few inhabitants stated that they knew everything about the project, the reactions from interviewed leaders referred to several aspects. With reference to the quantity and quality of information being provided by the company , three of the four interviewed leaders remarked the fact that during the last period a large quantity of information referring to the project has been constantly provided, through information centers, public meetings and publications. Special reference is made to RMGC information campaign that has been launched during the last years, as part of a new strategy to approach the project issues.

“When Gabriel first came to Roşia, the information related to the project was secret, people did not know anything and they started to invent things: „they came to take our gold and exploit us!”. Later, Gold changed its strategy; it came with information centers, public meetings during which the social, economic and environment issues were explained...” (C)

“Public debates took also place regarding this project. For instance, during the last years an information center has been active in the up square.” (B)

Nevertheless, as one of the leaders is of the opinion, the information des not reach to the respective addressees or does not produce the expected effects, due to a lack of interest from the inhabitants as to the provided information which is also due to the education of people living in the villages at the commune outskirts.

“Those that are interested participate in these discussions while those that are not interested do not. Publication in the media was carried out rather well (...). It is also a matter of everybody’s educational background. People up hill were not interested at all, poor them, and they do not have the necessary education to understand this project.” (B)

74 According to the method on result return , applied for the community development by the research teams under the coordination of M. Pascaru during 3 research and development projects that were performed by University “1 Decembrie 1918” Alba Iulia, during the period 2004 – 2006. 123

As regards the information credibility , this was considered differently, with two distinct positions that come to the forefront that being held by those that agree to the project, who suggest a high degree of credibility, based on the trust in the information source and that of those that oppose to the project. The information abundance expressing the company point of view, being widespread at local level and also the lack of consistency between the declarations of intention made by the company and those being enforced by it, are considered by the leaders that oppose to the project as a source of misinformation. “A well-informed person may not be adequately informed when in Roşia Montană, ever since the company has arrived, they give newspapers for free, such as Unirea, Informaţia de Alba, Monitorul. They are given and distributed in Roşia Montană stating only the company point of view. And, now, they have issued a newspaper intoxicating the entire area of Apuseni Mountains saying how good their project is. Consequently, this is not information as the respective person is not well-informed.” (D)

“Generally speaking, it is normal that people are not well-informed. In this sense, a person after being said several things within a given time, then when he sees that the respective thing is not done he has no trust any more in that thing. They have “misinformation centers”, where people go there” (D)

The project supporters have the same appreciations referring to the information that is provided by opponents. “There is also, here, a „misinformation” center, that of Soros, that provides information taken from the priests and the Romanian Academy, from Renate Webber, those that do not wish mining and promote alternatives.” (C)

The manner of information dissemination , by means of the written press, public debates and information centers is considered by leaders as inappropriate to local specificity, while they suggest that it would be more appropriate to inform every person in part. “What information? These are stories to put children to sleep. Well, if you do not go to anyone and you do not say anything to anyone, what information would that be?” (A)

Another opinion is that the information centers would make up for such deficiency provided they are used and the respective information is provided in an accessible way. “In fact they do not inform themselves in person, they only meet in the square and keep whispering to each other and even those that go to the respective information do not understand much how he things are going” (C)

As regards the effects of the information that is provided and assimilated by the inhabitants, one of the leaders (a project opponent) states that the departure from this area did not occur because of the lacking information but due to an adequate knowledge of the negative effects of this project. “That Is why you should go to those that left from here to you in Alba, Şard, Miceşti, and ask them:”Well, Mister, why did you leave Roşia Montană? Was there the money that tempted you? Or you merely left? I discussed with them:”I left because I know what such a project would mean”. (D)

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2. Agreement on RMGC project

The main aspect that was discussed with the interviewed leaders was that referring to the agreement expressed by the commune inhabitants as to the project. The offered explanations at a relatively high level of their agreement on the project focused on the personal material benefits that the inquiry subjects obtained or are hopefully to obtain from that. This would reside in the increase in value of real estate in the area of project direct impact and the assurance of well-paid jobs. “This agreement knew a development as beginning with last year, in October; they started again to buy real estate. (...) There are more and more people that agree, because everything is about money. We were, as such, poor. Who would have dreamed he could become a billionaire?” (B)

“This is the simple thing; money is a sword that can cut even the Gordian knot.” (D)

The aspect of community benefits produced by the company through the programs of social development in progress has also been highlighted, as a factor of increasing trust in the company and, implicitly, of an increasing agreement on the project. “The agreement increased as people began to trust Gold that brought them Internet, Fitness, youth club and did a lot for the community. The Social Department of Gold took also care of the people in need. They cleaned out snow for them and brought them fire wood.” (C)

While detailing the reasons that underline the agreement on the project , the leaders have the following remarks: (a) As regards the newly created jobs, the opponents consider that these will be, by far, less than the number announced by the company, the inhabitants will only accede to jobs with poor qualifications and, consequently, poorly paid and after closing the mining works (10-15 years, those employed as such will find themselves outside the labor market.

”We dispose of their organizational chart... during 8 years of mining there are only 200 employees. So, they start from 114 employees, then go to 200 and there after the number of jobs decrease. So what is solved? The person from Bucharest should not tell us any more anything of those 7000 jobs (...) there are those services with 148 employees of which at least 100 are foreigners from Romania,” (D)

“If, for instance, I am 35 years old and I work for 10 years, then the Company leaves, so bye- bye and what is there that I shall do afterwards ? When I am 45 years old who is going to take me for work?” (A)

The project supporters, in exchange, refer to the provisions in the sale-purchase agreement on the real estate whereby the company (the buyer) undertakes to hire at least one member of the former owner’s family.

(b) As regards the assertion that the project is to attract several other investors, as well, in the area, as a reason for the inhabitants’ agreement on the project, the comments are this time also in contrast. The leaders opposing the project do not agree: “No, there will be no

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investor to come ... We come here, occupy the entire area with a project and we say that it is only mining that one can do.” (D); and the project supporters agree: “Apart from the mine there will be other companies to come from other economic fields and, as such, other investors with other jobs. The chance for Roşia’s destiny is only Gabriel, only Gold may save mining in Roşia.” (C).

The leaders’ considerations regarding the main reasons that are invoked by the inhabitants that do not agree with the project (the fact that well-paid jobs will be for foreigners in the area and the fact that this project will destroy the natural environment), are not to deny the assertions but, from the project opponents, to go on details and from the project supporters, on justifications,. The first reason is backed up by the argument of the lack of local expertise as regards such mining operations while the second refers to the fact that pollution is a price that is paid all over the world in order to obtain material wellbeing and its size may be mitigated through the compliance with legal provisions.

“I told you they were to hire specialist, and it is sure that they work even now. People tell us many times: well why are you bringing somebody from Iasi, or somebody from Ploieşti? People are suspicious now, that they are extensively mining, they may be right to a certain extent” (B)

”They want to be great mine starters, which they cannot. For this specialists are needed; they should be brought here and only the foreigners have enough money to do this. ... They come here and beat the drums on the beauties in the area; this does not make people not to be hungry anymore. The riches are here to be rationally exploited in compliance with EU norms.” (C)

3. Alternatives to RMGC project

After presenting to the leaders the first three alternatives that evinced as viable in the opinion of the commune inhabitants, namely continuation of mining in the form that was previously practiced, live stock raising and tourism , the following comments and appreciations were made: Mining may be continues in the same way only if supported by the state as it proved not to be profitable anymore in the current economic context. The idea is expressed by two from among the leaders but may also be sensed in the speech of the other leaders.

“So, how has been exploited so far, it has been the Romanian state. The state does not get involved anymore, it privatized everything and if the state does not invest the area will die.” (B)

“Mining may not be carried out as before because that is why it was closed because it is bankrupt” (C)

Live stock raising, as an alternative in itself, has no support, however it is considered in relation with tourism for which the conservation of certain aspects from the traditional economy an that of the natural landscape is a vital thing. This is the point of view of the leaders opposing the project.

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Conclusions of the interviews with the local leaders: - Further to return interviews, the leaders validated the information that corresponded to their position as to the project and invalidated those that came in contradiction with the adopted position; - Several barriers were identified as to information to be received by the commune inhabitants, some of them related to transmitter (inadequacy of form in which information is communicated and the transmission channel to local specificity), others, related to receiver (lack of interest for the information that do not have a personal character) and also to other subjective factors such as the degree of trust the receiver may have as to the information source; - The fact that no change of position occurred with reference to the project after these interviews was predictable. In exchange, nuances became evident as to arguments and comments on statistical data that were generated by the inquiry. As such, the risk of forced interferences that might occur when interpreting data is reduced.

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5. STUDY CONCLUSIONS

Further to the review of the economic impact generated by the gold mining project proposed by SC Roşia Montană Gold Corporation S.A.(RMGC) on the zone there have been drawn some conclusions useful for the local community, local and national administration authorities, entitled institutions which are involved with the project completion and monitoring, the company investors and managers, economic entities, university students and all the project stakeholders. The review carried out by the expert team considered only the economic impact of the project which, of course, involves a social impact, too. The environmental impact has not been considered and in fact, it is the controversial issue about which the study authors have not expressed their opinion. The zone considered included the administrative perimeter of Rosia Monatna commune and of the neighbouring localities, respectively Abrud and Campeni towns, Buciun, Ciuruleasa, Bistra, Lupşa and Mogoş communes. The localities of the impacted zone have a long mining tradition and they have been highly impacted by the situation of the mining industry in the area which actually disappeared once the two RoşiaMin and Cupru Min mines had been closed and thus 1,200 persons were made redundant during he last two years. The social condition of the people from the area is impacted by the severe lack of jobs and it determines either a severe poverty or the migration of the population, particularly young population, to the developed urban zones of the country or the emigration abroad. Consequently, the zone is undergoing a continuous aging process and population migration. The economic development alternatives of the zone including farming or tourism may be considered only as auxiliary activities for obtaining additional income for the persons who are not involved with industrial or service supply activities. The farming potential is favourable to animal breeding, but this trade has to be developed based on the free market economy principles involving investments, knowledge and most of all, modification of the mentality and agriculture practices which is not easy. Assuming all these conditions are met, the agriculture alone cannot provide the living means for the population of the zone. There is a natural and anthropic tourism potential of the zone, but the tourism infrastructure is missing and it determines that the tourism potential is less rendered profitable. Major investment for the transport and traffic infrastructure, implementation of some suitable marketing programs are required so that the zone potential is rendered valuable. Even the competition with some localities from the neighbourhood of the impact zone and which have been declared tourism resorts discourage the private initiative in the field. The traditions related to the wood processing and the forestry potential also constitute an opportunity for the zone. The beneficiation of the rough or primary processed wood results in tree cutting and the diminution of the forestry vegetation regeneration and it may mitigate this opportunity of the locals. But forestry resources which can be rendered valuable are not available in all the areas and one of the localities which is deficitary in the field of industrial forestry exploitation is Roşia Montană. Taking into account the above comments, the project proposed by RMGC is one of the viable opportunities for the zone development. The direct economic impact of the project is particularly obvious in Roşia Montană, Bucium communes and Abrud town. Briefly, the economic impact of RMGC project is providing:

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• 1200 jobs during the construction stage and about 640 persons will be employed during the mining stage, most of them being from the impacted zone. The incomes obtained by the employees will be twice higher than the average salary income at the national economy level; o Enhancement of the business development in the zone as a result of the company acquisition policy, external service supply population purchasing power. All these will determine the creation of new jobs; • Award of significant money compensations, much higher than their previous market value, for the properties acquired by the company and it results in flow cash that the population can use not only for the rehabilitation of their impacted households but also for the establishment of private business for obtaining additional benefits; • Major contributions to the local and state budgets giving the possibility to achieve investments for public services in the zone. The total value of the tax, fees, charges and dividends which are to be paid throughout the project running life amounts to approximately 1 billion dollars; • Completion of a modern infrastructure in the resettlement and relocation zones and the opportunity to render valuable a part of the mine infrastructure after the project closure; • Providing micro-funding facilities and appropriate training programs meant to contribute to the enhancement of the entrepreneurial skills of the population from the zone; • Beneficiation and valorisation of the historical and cultural heritage as a result of the archaeological investigation programs undertaken by the company.

It is to be noted that the completion of the project proposed by RMGC is not in contradiction with other projects of economic development of the zone, but moreover, it can act as a catalyst of such projects. Of course, the project has not only a positive impact. The negative consequences may be considered at social level as it has a negative impact on a certain social cohesion because of the resettlement and relocation of the population impacted by the project. The persons, who decide to leave the zone, leave behind their memories and a certain lifestyle they were used to. The project is disputed particularly because of the environmental risk potential. The studies achieved by the company, approved by the specialized institutions and the expertise in the field of similar projects represent a guarantee for he mitigation of such risks. Otherwise, any other human activity and particularly the economic activity may be risky. Those who have responsibilities in the field will monitor the risks and substantiate the decision making being fully aware about it. What would be the alternative for sustainable development of the zone, if the project is not to be implemented? The answers given so far by the project opponents have not been conclusive. The responsible factors are to make the wisest decisions fully aware about the situation and in compliance with the opinions of the local people living in the zone and who are directly impacted by the existing situation, and if we speak about real democracy, then the decisions are made by the majority which considers also the minority protection by giving equal affirmation opportunities.

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